Nov 2021: MRNA $225- $230 Bull Call Spread



Trade Structure

$225- $230 Call Spread

Trade Date


Price Paid


Expiration Days



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Massive 1000 point drop in DOW!

Our group had been trading at reduced allocations (between 15% – 20%) for weeks now to reduce our exposure to the markets. Today was the day to take advantage of the sudden sell-off and I encourage everybody to stretch their allocations to 30%. Although, the new COVID variant is not something to be taken lightly, this massive drop in the market is an over-reaction in my opinion.

Trade Rationale

MRNA had a gigantic drop of nearly 40% in a matter of 2 days. This was triggered by Pfizer’s good news and exacerbated further by Moderna’s own supply/chain issues and the fact that their vaccine won’t be approved for teens before the year end. Although this is a lot of bad news, a 40% sell-off is a little overdone and unwarranted in my opinion. RSI has plunged into oversold territory and a bounce is overdue.

Trade Selection Criteria

Overall market movement

This is a post earnings trade, the individual stock’s price movement is more important than the overall market.

No Earnings or Significant News

This is a post earnings trade and earnings were announced a day ago

Bollinger Bands outside Keltner Channels

Bollinger bands are clearly outside Keltner Channels

RSI Analysis

Trade was taken purely based on price/action

ADX Analysis

Trade was taken purely based on price/action

Trade Analysis

I took advantage of the monster over-reaction to Pfizer's good news on many vaccine stocks including MRNA. The stock initially dropped some more against me before turning around and heading in my direction. Today's massive 1000 point drop in the market on COVID news was very favorable for all the trades we had on health stocks and MRNA was one of the winners.

Trade Outcome




Beginning Account Balance


Ending Account Balance


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