Merck's Weakness Could Mean Profits With This Bearish Option Trade

The S&P 500 has recovered nicely, but is not entirely out of the woods with some caution still warranted. Merck (MRK) stock has been struggling since the July 30 earnings announcement, which saw the stock plunge through the 200-day moving average. Merck stock is down 11% in the last three months and could potentially be headed for new lows. If Merck continues to move lower a bear put spread would be the best way to trade it. A bear put spread is a debit spread, meaning we need to pay...