Option Focus | Moderna’s $3.97 Million and $3.88 Million Double Put Sales Signal Premium-Collecting Institutions Betting Against a Severe Breakdown

Option Witch
Sep 23

Moderna ended the session at $182.56, with a 5.56% gain.

The largest options prints were not aggressive directional bets but two massive premium-selling put spread structures. A $3.97 million net credit trade and a separate $3.88 million net credit trade dominated the tape, with institutions selling far out-of-the-money puts into 2026 and 2027 expirations. Rather than chasing the rally with call buying, these traders monetized elevated volatility while expressing confidence that any downside in Moderna remains contained, signaling a range-bound, premium-collecting stance from large players.

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Options Indicators

Moderna’s implied volatility stands at 83.13%, while its IV percentile is 69.72%, placing current option pricing near the upper end of the neutral range rather than clearly elevated. In other words, implied volatility is high in absolute terms, but relative to its own recent history, options are not yet in outright expensive territory. The IV/HV ratio of 0.93 also suggests implied volatility is slightly below historical volatility, indicating option premiums are not showing a notable excess over realized movement.

The Call/Put volume ratio is 2.00.

Large Trades

A put spread-style premium-selling trade collecting $3.97 million was the largest featured order, structured as a same-direction double put sale for the November 20, 2026 expiration. The trader sold 2,500 contracts of the $150.00 put and 2,500 contracts of the $115.00 put, with both strikes out of the money versus the $182.56 reference stock price. As a spread strategy, this was done for a net credit of $3.97 million, pointing to an income-generating stance that benefits if Moderna remains above those lower strike areas through expiration. The structure suggests a neutral-to-bearish posture in the sense that the trader is willing to take downside exposure below the strikes, but the primary intent appears to be premium collection while expressing confidence that any decline stays contained.

Another premium-selling put spread strategy brought in a net credit of $3.88 million, using the March 19, 2027 expiration. In this trade, 2,000 contracts of the $120.00 put and 4,000 contracts of the $95.00 put were sold, and both legs were also out of the money relative to the current stock price. With a net credit of $3.88 million, this position likewise reflects a volatility-selling, range-bound view rather than an outright bullish upside chase. Overall, the large-trade flow points to a bearish tilt in institutional positioning, but not through aggressive downside put buying; instead, the sentiment is expressed through sizeable out-of-the-money put selling structures that indicate expectations for Moderna to avoid a severe breakdown while traders monetize elevated premium and lean on a broad trading range.

Strategy Reference

For income-oriented traders seeking a lower assignment probability, selling an out-of-the-money put at the $115.00 strike in a nearer expiration, or mirroring the institutional $150.00/$115.00 put credit spread, can reduce margin exposure while collecting premium in line with the current elevated but not extreme volatility regime.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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