5MRD

Surprise Quarterly Profit Sends Moderna Stock Surging

Technical underperformance isn't deterring options bulls

Digital Content Manager
Feb 22, 2024 at 10:44 AM
facebook X logo linkedin


Moderna Inc (NASDAQ:MRNA) reported a surprise profit for the fourth quarter earlier, with revenue also surpassing estimates despite slower Covid-19 vaccine sales. In addition, the company announced plans to launch its respiratory syncytial virus (RSV) shot, which is expected to generate $280 million, in both Germany and Australia in 2024. 

MRNA was last seen up 7.8% at $94.43, but is still wrestling overhead pressure from the 20-day moving average, which has been in place since mid-January. In the last year, the equity shed 40.3%.

This technical underperformance isn't deterring options bulls, with 21,000 calls and 14,000 puts traded so far -- overall volume that is five times the intraday average. The weekly 2/23 95-strike call is by far the most popular contract, with new positions being bought to open there.

This denotes a shift in sentiment, as short-term options traders lean bearish. This is per MRNA's s Schaeffer's put/call open interest ratio (SOIR) of 1.07 that stands in the 92nd percentile of readings from the last 12 months.  A further unwinding of pessimism could create additional tailwinds for the security.

Analysts are yet to chime in, but 10 of the 19 in coverage still call the equity a tepid "hold" or worse. Plus, the 20.88 million share sold short still make up 6.1% of Moderna stock's available float.

 

$40 = 4 Trades That Can Move the Needle

Start your trading week with a ready-to-execute trade hand selected by Schaeffer's very own Senior VP of Research Todd Salamone. 

Our Trade of the Week is backed by 30+ years of experience and will provide you the market insight, research, and trade management you need to act with confidence.

One month. 4 trades. Only $10 per trade!

👉 Click Here to Get Your First Trade Before Monday’s Opening Bell

tesla
 
 
 
 

Follow us on X, Follow us on Twitter