Mike Khouw's Moderna Trade

On CNBC's "Options Action," Mike Khouw said Moderna Inc MRNA looks to him a bit extended so he suggested an options strategy to make a bearish bet on the name.

To mitigate high options prices caused by high near-term implied volatility, Khouw wants to buy the October $240 put for $13.70 and sell the August $240 put for $5.90. The options structure would cost him $7.80 and he is hoping the stock is going to trade close to $240 at the August expiration.

Carter Worth gave his technical view on the stock. He said 17 analysts who cover the stock have an average price target of $187, while the stock is trading at $286.43. He has also noticed Moderna is trading at its internal trend line and he thinks it is time to harvest gains.