MRNA Bullish Opening Trade Signal – March 10, 2022

View MRNA Trade

Strategy Details

Strategy: Call Debit Spread

Strategy Direction: Bullish

Details: Buy to open April 22, 2022 $140/$170 Call Vertical @ $10.40 Debit

Counter Signal: This is a bullish strategy on a stock or ETF that is experiencing a bearish trend. 

1M/6M Trends: Bearish/Bearish

Technical Score: 1/10

OptionsPlay Score: 103

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that if there is a multi-leg option strategy, it should be entered as a single trade.

Investment Rationale

MRNA has sold off some 60% from all-time highs, with it even having been as much as 75% off that high earlier this week. But it held the March 2021 low this week, which was the last low before last year’s surge higher, while also three weeks ago marking a weekly Setup -9 count and this week seeing the weekly cloud’s Lagging Line bounce on the top of its cloud. It also bottomed against the most recent downtrend line drawn. Yesterday’s large move higher is attributed to a sell-side analyst upgrading the name. That may be the first of several more to come, and we think it’s now worth getting long for a trading bounce. 

Thus, we will look to buy an April 22 $140/$170 call spread for a $10.40 debit – its closing mid-price spread from yesterday.