Wait Before Buying Moderna Stock, Says Bear Signal

Moderna recently inked a big deal in China

Deputy Editor
Jul 6, 2023 at 2:34 PM
facebook X logo linkedin

Shares of pharmaceutical concern Moderna Inc (NASDAQ:MRNA) are 4.3% lower today at $118.25, one day after the company inked a deal to research, develop, and manufacture mRNA medicines in China. The equity is down 34.2% in 2023, and trading at its lowest level since late 2022. Even worse, MRNA just came within striking distance of a historically bearish trendline that could add even more headwinds.

Specifically, Moderna just came within one standard deviation of its 60-day moving average after a lengthy stretch above the trendline. According to White's data, five similar signals occurred over the past three years. MRNA was lower one month later after all but two signals, averaging a one-month loss of 4.2%. A similar move from the security's current perch would put Moderna stock at around $113, or levels not seen since early 2021.

MRNA Chart July 52023

An unwinding of optimism in the options pits could weigh on MRNA. This is per the security's Schaeffer's put/call open interest ratio (SOIR) of 0.70 that stands higher than just 1% of annual readings, implying short-term options traders have been more call-biased than usual. 

Now could be an ideal time to weigh in with options, too, as premium is affordable. This is according to Moderna stock's Schaeffer's Volatility Index (SVI) reading of 39% that stands in the low 4th percentile of its 12-month range -- an indicator that options traders are pricing in lower-than-usual volatility expectations at the moment. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI