Trade Thesis for Moderna Inc. (MRNA):
- The stock is down ~23% from its recent peak as taper fears have crept in.
- This added volatility creates a nice opportunity for cash-secured puts.
- Strike Zone is $272.00 - $325.00
Trade Analysis (Click the video below)
Cash-Secured Put Analysis
Based on your personal risk tolerance, consider the following cash-secured put options with various risk/reward profiles
(target monthly yield = 1.5%-3.0%)
MRNA Sept 17th $300.00 Put
Price (Premium): ~$7.45
MoS %: 22.1%
(target monthly yield = 1.0%-1.5%)
MRNA Sept 17th $270.00 Put
Price (Premium): ~$3.55
MoS %: 29.9%
(target monthly yield = 0.5%-1.0%)
MRNA Sept 17th $250.00 Put
Price (Premium): ~$1.98
MoS %: 35.1%
AMY % = Average Monthly Yield % / MoS % = Margin-of-Safety %
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