Moderna (MRNA) has run up over the past two weeks and our call is in the money.
In addition to money rotating into pharmaceutical stocks recently, Johnson & Johnson (JNJ) announced it would discontinue its vaccine candidate for respiratory syncytial virus (RSV), leaving one less competitor for Moderna.
Let’s roll our call out two weeks and to a higher strike price to capture $5 per share in additional potential appreciation and generate more cash.
Note that the spreads between the bid and the ask on these options are wide. Work your limit orders as necessary to complete the roll.
Current Stock Price: $155.37
Cost Basis: $184.80
- Buy to close the MRNA Apr Week One (4/6) 150 Call for around $5.80
- Sell to open the MRNA Apr Monthly (4/21) 155 Call for around $7.40
- Set initial credit limit at $1.60, but adjust as needed to roll today
New Cost Basis: $183.20