On Monday, July 19, 2021, a Moderna Weekly Options trade was recommended
to our members based on several catalysts.
of Original Moderna Weekly Options Recommendation Further
Why The Jump
In Our Moderna Weekly Options Trade On Monday.....
biotech company, is now a household name after its Covid-19 vaccine mRNA-127
has been approved for use in many regions across the globe.
massive shares gains, the stock is up 200% year-to-date. The latest catalyst
takes effect as Wall Street gives its seal of approval to join the exclusive
list of companies that make up the S&P 500 – the stock market’s bellwether
index, on July 21.
up by nearly 10% in mid-afternoon trading Monday with its vaccine expected to
fight effectively against the new coronavirus delta variant.
its powerful delta variant, the coronavirus is very much on the rise again, therefore
there is a need for a more powerful vaccine which will clearly benefit Moderna.
Recommended Moderna Weekly
** MODERNA WEEKLY OPTION TRADE: Buy MRNA JUL 30 2021 300.000 CALLS at approximately $10.00.
(Actually bought for $11.00)
Moderna Weekly Options Trade
On Monday, July 19, 2021, “Weekly Options Members,” entered the Moderna Weekly Options trade mentioned
above for $11.00, shortly after the market opened.
By 3:15pm the Moderna Weekly
Options trade had reached a high of $27.55 – up 150% - an increase of $1,655
within the trading day.
It is very likely that a new
Moderna Weekly Options trade, moving forward, could also be successful as early
trading in the futures shows an increase in the stock price already.
Join us and see what we are
proposing for a new Moderna Weekly Options Trade!
Prelude to The Moderna Weekly Options Trade.....
Moderna Inc (NASDAQ: MRNA), which has
seen its stock surge 250% over the past year as it helps vaccinate the world
from the coronavirus, will officially enter the S&P 500 on July 21.
The news sent shares popping more than 8% to $282 in Friday's session as
the stock will likely be purchased by fund managers who benchmark to the
S&P 500. But Jefferies analyst Michael Yee says “he thinks the run in Moderna stock (MRNA) is far from done.”
"Moderna is the Tesla of
biotech," says Yee, pointing to Moderna's impressive pipeline of
product innovation. (read more in the Analysts Opinions down further)
Moderna shares have skyrocketed more than threefold over the past 12
months with its coronavirus inoculation getting emergency use authorization in
the U.S. in December, just a week behind the first approval for Pfizer Inc. and
BioNTech SE’s vaccine.
Earlier last week, its market valuation surpassed $100 billion, putting
it in an elite group of biotech firms of that size.
The drug developer has rallied over 170% so far this year, making it the
top-performing stock on the Nasdaq 100 Index. Its meteoric rally thus far could
put it at the top spot of the S&P 500 when it joins next week.
- Moderna is a pharmaceutical
company developing treatments using messenger RNA (mRNA).
- The company believes that it
can use mRNA to treat a wealth of conditions that affect humans.
- A recent example of that
includes the company’s vaccine for the novel coronavirus.
- Moderna was founded in 2010 and
is based out of Cambridge, Mass.
- It started trading shares of
MRNA stock publicly on the Nasdaq Exchange in late 2018.
- The company currently employees
about 1,500 people.
- Stéphane Bancel serves as the
CEO of Moderna.
- Bancel has been acting as the
company’s CEO since 2011, which is also when he joined its Board of Directors.
- Paul Burton is the CMO of
- Burton joined Moderna after
spending 16 years in the employ of Johnson & Johnson (NYSE:JNJ).
1. Added to S&P
On Friday, Moderna
was slated to be added to the popular S&P 500 index effective
before the beginning of trading on Wednesday, July 21. It will replace Alexion Pharmaceuticals,
which is being acquired by healthcare giant AstraZeneca.
entering the S&P 500 after reporting only one quarter -- its most recent --
of profitability as a public company.
makes sense intuitively, given that the vaccine maker's market capitalization
has shot well above $100 billion after its recent success.
One of the
requirements for inclusion in the index is that a company’s most recent quarterly
earnings as well as the sum of its trailing four quarters’ earnings must be
positive. Before Moderna’s Covid vaccination was authorized it was still a
development stage biotech with no products to sell.
In the past, the
S&P 500 selection committee has often waited for more than one quarter
after a company had met its earnings criteria to include a large cap stock in
the benchmark. For instance, Tesla Inc., the largest company ever added to the
S&P 500, became eligible for inclusion after reporting second-quarter
earnings in July 2020, but was not added until Dec. 18 after an additional
quarter of profitability.
Managers of mutual funds that track the S&P 500 will need to buy
shares of Moderna following its inclusion in the index. Their purchases could
lead to a short-term increase in demand for its stock, thereby boosting its
3. Johnson &
Moderna appeared to
be benefiting from the struggles of one of its key vaccine maker rivals. The
Food and Drug Administration added a warning to Johnson & Johnson's
COVID-19 vaccine noting that it had been linked in extremely rare cases to an
autoimmune condition known as Guillain-Barre syndrome. With no similar link
found to that illness for Moderna's coronavirus vaccine, investors were likely
betting that these potential safety concerns could lead to higher demand for
Cambridge, Massachusetts-based company has said its vaccinations are producing
antibodies against the more easily transmitted delta form of the pathogen,
though at a lower level than for the main virus. Moderna is also targeting new
vaccines and drugs for other viruses like Zika and the flu as well diseases like
HIV and cancer.
5. Future Earnings…..
Aug. 5, Moderna will report its earnings for the fiscal second quarter of 2021.
Analysts are forecasting that the vaccine maker will reverse a year-ago loss to
record $6.04 EPS on sales of nearly $4.3 billion this quarter -- revenue growth
of more than 6,000%!
"Moderna is the Tesla of biotech," says Jefferies analyst Michael Yee,
pointing to Moderna's impressive pipeline of product innovation.
Yee sees at least two medium-term
catalysts for Moderna's stock price. First are the potential for COVID-19
booster shots out of Moderna, which could be discussed by management when the
company reports earnings on Aug. 5.
"We see 2021 guidance increasing to $21 billion from
$19 billion and expect positive commentary around boosters in development
(potentially Delta next) and preparing for 2022 orders," Yee writes in a research note to
clients. Yee believes the stockpiling of COVID-19 booster shots by the
government would be a tailwind to players such as Moderna and Pfizer.
Meanwhile, Yee thinks investors
shouldn't sleep on Moderna's efforts on flu vaccines.
"While the boosting [booster shot] debate will continue
for the rest of the year, we do think the market will look to Phase I flu data
by year-end. We think COVID infections probably start to rise again in winter
as some protection wears down 6 [million]-8 million from March, but they will
likely be mild. But Moderna is testing a multivalent influenza vaccine and has
antibody titer data by year-end. We think this data will look very strong (very
high titers) — and supports large Phase II/III in 2022/2023 for high PoS," Yee says.
The analyst has a $250 price target
on Moderna's stock, but an upside target of $325.
"Our upside scenario of $325 considers high
probabilities of success for each of the major areas and indications (vs. the
base case)," explains Yee. "In this scenario, we assume MRNA's
clinical candidates produce better-than-expected results in their ongoing
programs, the prophylactic vaccine areas are significantly de-risked toward 90%
PoS, and the cancer programs show positive early data, opening up a new area of
R&D opportunity. We also note the potential for stock accretion on the race
for Vaccine 2.0 against emerging COVID-19 variants."