MRNA Trade on Nov 16, 2020 15:27 from Marius: Tradervue User Stock Trades.

Markets opened with the same theme as last week. Strong in all sectors and global relative strength starting to show outperformance. Notable inflow of funds last week into equities.

Fundamental Analysis

MRNA announced its phase 3 development and had a 95% success rate. It was also developed better than PFE's vaccine due to the storage and stability handling. This also breaking out to ATH's in a strong market. Berkshire has been a buyer as well according to recent filings.

Quantitative Analysis

Intraday Fundamentals

RVOL 7.75
AVOL 9.08M
ATR 5.04
Inst Own 55.80%
Short Float 7.09%
Market Cap 38.08B

Options Statistics

SI 2.586
IV 85.05%
IVP 26%
P/C Ratio 0.655
VWAP 97.6

Options Positioning Metrics

OI 3,671
Vol 1,110
Delta -.02
Theta -.06
Vega .01
Gamma .00
MMM +/- 8.528
Series IV 95.13%

Tape Reading

Technical Analysis

Trade Review

Position was closed at 50% of max profit in 1 out of 4 trading days. The trade execution was automated and set due to risk management and that I would be unable to attend to the trade as closely the next day. I was also experiencing some buying power and margin call issues as options position metrics development and size was mis matched. There was more risk in this trade due to positioning and my broker potentially margin calling.

Keeping in mind for the future of my positioning and risk management. In a way I felt that I was forcing a trade but on key variables that I entered the trade. Forcing the trade based on external variables I may have overlooked. The trade was pre planned with the quantitative modeling and discretionary technical analysis. This trade should work until expiry just too many other factors externally. One of the most not being able to be in front of the desk to manage if I did get called. Alerts were set so I would be notified if critical levels were breached.

I'm grading this as a C in overall execution due to the extra risk involved and forcing of trade. I don't have to trade but as a trader I also understand that if I see a set-up in my playbook I have to execute. If there is a unfavorable outcome I will have to accept. Risk management is key and I can't get too comfortable but at the same rate I have to push limits. This trade had an element of both and I did push a little too much. And this is regardless of being a profitable trade. Long-term progress is the goal and getting a liquidation or call warning is a wake up call.

Noting that I may have felt the need to trade it because I noticed the trade over the weekend and notice that if the trade was initiated when key breakout levels were broken last week the trade had a +20x reward over this position. Didn't know that this news would hit opening into the week but keeping in mind to keep attentive of alerts that are set. This alert did go off on my radar but I ignored it as I was making trade and booking other profits last week. This will be another key area of development that I will have to keep note to grow as a professional trader. Keep attentive to the A++ trades.