Moderna (MRNA) is currently trading 0.3% above the strike price of our MRNA Feb Monthly (2/17) 172.50 Put with the company scheduled to report earnings on Feb. 23. I am recommending we watch the put expire.
If it expires worthless, we will wait until after the earnings announcement to reenter the position by selling a put to reduce our large net debit.
If we are instead assigned shares, I plan to sell a call and then purchase a protective put to hedge against a post-earnings sell-off. The hope is that Moderna rallies after earnings and the put expires worthless. However, if the stock sells off sharply, the put will help offset the downside in shares.
Current Stock Price: $172.96
Net Debit: $21.65
Action: Watch put expire
Cost Basis (if assigned shares): $194.14