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Sep 2021: MRNA $370 – $375 Bull Call Spread

Stock

MRNA

Trade Structure

$370-$375 Call Spread

Trade Date

9/1/2021

Price Paid

$250

Expiration Days

10/01/2021

THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.

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Trade Rationale

MRNA like other pharma stocks is a very volatile stock. After an eps beat it initially shot up from $400 to almost $500 in a matter of 3 days. As is common with these kind of sudden moves, the stock usually pulls back due to profit taking. MRNA did pull back and then started going sideways stabilizing in a range between $365 and $405. I took this trade somewhere towards the lower end of the trading range. It seems to be popping out of this sideways movement to the upside and looks like a pretty good trade at the moment.

Trade Selection Criteria

Overall market movement

This trade is a post earnings trade. With these kind of trades I pay attention to the individual stock movement more than anything else. The overall market movement does not factor much into it. 

N/A

No Earnings or Significant News

This is a post-earnings trade. The earnings were announced a few days ago.

Bollinger Bands outside Keltner Channels

Bollinger bands are clearly outside Keltner Channels.

RSI Analysis

RSI is sharply turning up

ADX Analysis

DI- is turning down and DI+ is turning up at the same time.

Trade Analysis

MRNA just took off in my direction after placing this trade and returned 94% ROI in 22 days!

Trade Outcome

WINNER

Profit/Loss

$235

Beginning Account Balance

$17,100

Ending Account Balance

$17,500

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