Given the high likelihood of a sell-off following the conclusion of the Federal Reserve meeting tomorrow, I am recommending we buy a protective put on Moderna (MRNA), effectively turning the position into a spread.
Note that this put is being purchased as a hedge. Ideally, the market will go up and it will expire worthless. However, in the event the market sells off sharply, the purchased put could explode in value. If that happens, we will look to pocket profits to help offset our net debit and/or roll to a lower strike to keep our hedge in place.
Note that we continue to track the ongoing net debit we have in MRNA in the Income Masters program as well.
Current Stock Price: $121.08
Net Debit: $1.04
Action: Buy to open the MRNA Jun Monthly (6/17) 115 Put for around $2.06, but adjust as needed to but a put today
New Net Debit: $3.10