Moderna Options Analysis: Potential Gains from New Contracts

Investors eye new options for Moderna Inc as the May 9th contracts present intriguing opportunities. The $29 put option offers a discount to current prices, while a $33 call may yield attractive returns.

Date: 27-03-2025

AI Rating: 7

Options Overview: The report indicates that new options have become available for Moderna Inc (MRNA) with expiration on May 9th. These options include a put contract at the $29.00 strike price and a call contract at the $33.00 strike price, offering investors various strategies that could impact stock prices. The put contract at $29.00 carries a current bid of $1.46 and provides an appealing entry point for investors who see value underneath the current market price of $31.93. If the stock does not reach the $29.00 level, there is a 69% chance that the put will expire worthless, potentially providing a return of 5.03%, equivalent to 42.73% annualized returns, if held until expiration. On the call side, the $33.00 strike price, with a current bid of $2.00, allows investors to consider a covered call position, locking in a potential gain of 9.61% if the shares are called away. A 52% probability exists that this won't happen, allowing investors to retain their shares and keep the premium from the call option, yielding a 6.26% additional return or 53.17% annualized. Market Sentiment: The latest data suggests sufficient market interest in these strike prices, with the perception of MRNA’s performance indicating volatility. The implied volatility associated with the put contract is noted at 68%, while the call sits a bit higher at 70%. This indicates a market that is expecting price fluctuations in the near future, which can lead to increased trading activity and influence stock prices further. Given the current circumstances, investors are provided with viable options to potentially enhance returns or hedge against declines in the stock price. The presence of favorable odds for the options to expire worthless suggests that the market has a positive outlook, but the need for careful monitoring remains essential as prices evolve.

Stocks: MRNA