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Moderna Up Over 8% On Strong Options Volume

Moderna Inc (NASDAQ: MRNA) is having a strong start to the week, up more than 7% Monday on heavy volume. Thus far, the stock has traded over 11 million shares versus its 10 day average of 8 million.

What Happened: The stock received positive news late last week as it was granted authorization for booster doses of its COVID-19 vaccine by the U.S. Food. and Drug Administration.

SEE ALSO: Why Moderna Shares Continue To Climb Higher Today

Options traders have continued the bullish momentum trading more than 190,000 contracts on the day (see below).

total_option_flows_nov_22_mrna.png

Looking at the data, of the 190,000+ options traded approximately 152,000 were calls with only 38,000+ puts, meaning 80% of all options traded today were calls.

Why It Matters: Prior to Monday, Moderna had 372,000 calls and 359,000 puts for a total of 731,000 options. Thus, today’s 190,000+ options represent a 25% increase in one day.

Any time you have a 25% increase in the total options in one day, it shows options traders are highly active in the stock. Combine that heavy activity with 80% of them being calls, and you have short-term bullish pressure on the stock.

What’s Next: Looking at the Nov. 26 expiry, the largest strikes by volume and open interest are the $280 and $300 strikes with interest slowly trailing off above the $305 and $310 strikes (image below).

mrna_nov_26_strikes.png

Short term this suggests option traders are targeting the $310 as their “moonshot” price for the week and see $280 as potential support. Below $280, there is solid interest down to $270 but drops materially below that.

Meanwhile, any moves above $300 may start to wane as it gets into the $305 and $310 strikes.

But, if strong option flows continue like this for the week, you might start to see more interest build above the $300 strike, which could pull the prices higher.

Photo: Ian Hutchinson via Unsplash

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