Some big investors are betting that Moderna's stock price will go down. They are using options to make these bets. Options are like contracts that give you the right to buy or sell a stock at a certain price and time. The big investors have different opinions about how much the stock price will change, but most of them think it will go down. This might mean that they know something that others don't, or it could just be a guess. Retail traders, which are regular people like you and me who buy and sell stocks, should pay attention to this because it could affect the stock price. Read from source...
- The title is misleading and clickbait, as it implies that only "whales" are betting on Moderna, while the article itself admits that the exact nature of these investors remains a mystery. A more accurate title would be something like "Options Activity Detected in Moderna Shares" or "Some Investors Show Interest in Moderna Puts and Calls".
- The article relies heavily on options data from Benzinga, which is not a reliable source of information for several reasons. First, options data are publicly accessible and can be manipulated by anyone with enough knowledge and resources. Second, Benzinga is not a regulated or authoritative financial institution, but rather a media outlet that provides news, analysis, and insights on various topics related to the stock market. Third, Benzinga has a history of publishing sensationalist and inaccurate stories that are based on dubious sources and methods. For example, in 2019, they reported that Tesla (NASDAQ:TSLA) CEO Elon Musk had bought $50 million worth of Bitcoin (BTC), which turned out to be false.
- The article makes unsubstantiated claims about the sentiment and intentions of the large-scale traders, based on a small sample of options transactions. It is not possible to infer the motives or foreknowledge of these investors from such limited data, as there could be many other factors influencing their decisions, such as market trends, technical indicators, fundamentals, etc. Moreover, the article assumes that bearish options are a sign of negative expectations, while bullish ones are a sign of positive ones, which is not always the case. Options are complex financial instruments that can be used for various purposes, such as hedging, speculation, arbitrage, etc., and do not necessarily reflect the underlying sentiment of the investors.
- The article uses vague and subjective terms to describe the options transactions, such as "significant funds", "major move", "foreknowledge", "upcoming events", etc., which have no clear or objective meaning in the context of options trading. These terms are meant to create a sense of mystery and intrigue among the readers, but also to imply that the author has some insider knowledge or expertise on the topic, which is not the case.
- The article ends with a predicted price range for Moderna shares, based on the implied volatility of the options, which is a flawed and misleading methodology. Implied volatility is a measure of how much the option prices fluctuate over time, based on the market's expectations of future movements in the underlying asset. It does not reflect the actual or expected volatility of the asset
75% bearish, 25% bullish
- Bearish whales have taken a position in Moderna, which may indicate foreknowledge of upcoming events or negative developments for the company. Retail traders should be aware of this and consider it when making their own decisions.
- The options sentiment is mixed, with more bearish than bullish transactions. This suggests that there is no clear consensus among large investors about Moderna's future performance or prospects.
- The predicted price range for Moderna based on the Vo