Moderna (MRNA) – Moderna has been in a downtrend the last few weeks after it corrected a large run up this summer. The stock has fallen about 30% in less than 3 weeks and is back to the 300 level which is where it was added to the S&P 500 this summer. This zone offers some support based on a volume profile edge down around 280. This is the most oversold the RSI has been all year and looking to fade the move looks like a good risk/reward into November expiration. On the upside the 21 EMA is at 370 so MRNA can see a healthy snapback rally based on how extended it has gotten. The stock formed an inside day on Friday showing a pause after the recent decline so it appears that sellers are exhausted and a potential base can form near the 300 round number. MRNA has only been around for 3 years since it IPO’ed but has seasonally been strong into November up all 3 years. MRNA sees a lot of option activity but last week saw a large deep ITM Dec $165 call buyer for $15M. Also a few large opening put sales on 10/4 were selling the September 2022 $280 puts for $2M and the Jan 2023 $290 puts sold for $6M in premium.

Trade to consider: Sell MRNA November 280/270 put spread for 3.60 credit or better