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.
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
