Moderna (MRNA) rallied yesterday on news that its experimental RSV vaccine is nearly 84% effective against respiratory symptoms in older adults. Although it is giving back some of those gains today amid broader market weakness, our put remains well out of the money and is trading for just a few cents.
I am recommending we roll it out one week and to a higher strike to generate more income and reduce our net debit on the position
You can enter the second leg of today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $193.50
Net Debit: $23.75
- Buy to close the MRNA Jan Monthly (1/20) 170 Put for around $0.04
- Sell to open the MRNA Jan Week Four (1/27) 175 Put for around $0.84
- Set initial credit limit at $0.80, but adjust as needed to roll today
New Net Debit: $22.95