My Trade Details:

  • MRNA Feb 17 2023 180 Put near $5
  • Stop: Close above $197
  • Target 1: $177
  • Target 2: $165


MRNA – Your Bullseye Pick Of The Week - Bullseye Pick of the Week

The options were up over 170%

Here was my reasoning:

There is one stock that has been very strong, but it too has been “running out of gas” lately.  There was also a viral video this weekend that made their main competitor (PFE) look very bad.  I think that’s going to spill over to the sector, and it’s very hard to imagine that we see a continued rally anytime soon.

The stock I am looking to bet against this week is Moderna (MRNA).

MRNA has already slashed its outlook for 2023 sales (when is the last time you heard about anyone getting a Covid shot?).

The Company is really dependent on future vaccines, and importantly the trust of the public.  I think the Pfizer video this weekend is going to further shake the confidence of people everywhere, and probably put a lid on the price of the stock for a while.

I am looking to bet against MRNA this week by buying puts on it (this is a bet the stock will go lower if you are new to trading options).

I’m going to use a stop loss of $197 if MRNA closes above that level.

My targets to the downside (in which case the puts would make money) will be near the recent support level of $177, and then $165 as target #2 if things really start to break down.

This is going to be an exciting week ahead of us with the release of the Fed rate decision and lots of earnings reports from big tech names.  Buckle up and let’s get on the right side of the trade!