Mike Khouw's Moderna Options Trade

On CNBC's "Options Action", Mike Khouw shared with the viewers his options trading idea for Moderna Inc MRNA, the company that is currently leading the race for a COVID-19 vaccine.

The stock is trading close to its all-time high and the options premiums in the name are elevated, so Khouw wants to make a bullish bet by selling the May $30/$28 put spread for a credit of 80 cents. If the stock stays above $30 at the May expiration, Khouw is going to collect the premium. The trade starts to lose money below $29.20 and in case of a pullback to $28 or lower it would reach its maximal loss of $1.20.

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