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Mike Khouw's Moderna Options Trade

Mike Khouw's Moderna Options Trade

On CNBC's "Options Action", Mike Khouw shared with the viewers his options trading idea for Moderna Inc (NASDAQ: 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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