Moderna shares will be included in the benchmark on July 21, replacing Alexion Pharmaceuticals
Pharmaceutical name Moderna Inc (NASDAQ: MRNA) rises 7.8% this morning to $ 279.95 on its last review, after previously hitting an all-time high of $ 280.50. Today’s bull gap comes after news that the company will join the S&P 500 (SPX) on July 21, replacing Alexion Pharmaceuticals (ALXN), which will merge with UK drug maker AstraZeneca (AZN) next week.
Safety has had tremendous success since the US Federal Drug Administration approved its Covid-19 vaccine for emergency use. After tearing the charts up for much of the past 12 months, the stock broke resistance at the $ 245 mark earlier this week, with the assistance of the 20-day moving average. Year-on-year, MRNA has a lead of 223.7%.
Despite this positive price movement, the majority of analysts are pessimistic about Moderna shares. Of the 13 13 in question, eight still have a lukewarm “hold” or lower rating, while five say “strong buy”. Additionally, the 12-month consensus target of $ 191.08 is a 31.4% discount from last night’s closing price, suggesting the stock may be overdue for another round of upgrades and / or target price increases.
Moderna stock could also benefit from a shift in sentiment in the options markets that reflects this pessimism. On the International Securities Exchange (ISE), the Cboe Options Exchange (CBOE) and the NASDAQ OMX PHLX (PHLX), MRNA has a 50-day put / call volume ratio that is over 93% of last year’s readings. This means that long puts will be picked up faster than usual.
Accordingly, Schaeffer’s Put / Call Open Interest Ratio (SOIR) is over 80% of the values for the last 12 months. In simpler terms, short-term option traders have rarely been more put biased.
Now could be the right time to speculate with options about the next move in Moderna shares. The stock’s 66% Schaeffer’s Volatility Index (SVI) is in the 14th percentile of values in its annual range, suggesting options gamers are currently pricing in low volatility expectations. Also is the equity Schaeffer’s volatility scorecard (SVS) is at 98 out of 100, which suggests the stock exceeded those volatility expectations over the past year – a boon for premium buyers.