Seres Therapeutics, Inc. stock trades under the ticker MCRB & has recently shown technical strength.
MCRB stock is currently $31.80/share, and their calls at this level are at a $30 and a $35 strike price.
While the Delta of the in-the-money $30 call is already 0.72, I may be more inclined to buy this than the out-of-the-money $35 call, as it needs 10% growth in order to become in-the-money (using the 10/16 expiration date).
MCRB Stock Price: $31.80
10 Day Moving-Average: $29.09
50 Day Moving-Average: $23.48
200 Day Moving-Average: $8.85
The other advantage of the MCRB $30 calls to the $35 calls is that their time decay will be slightly more forgiving; as the $30 call’s Theta is -0.083, and the $35 call’s Theta is -0.091.
The $30 strike price call option also has a more advantageous implied volatility, and although it is over 50%, selling the $35 call while owning the $30 call could be a good trade idea.
*** I DO NOT OWN SHARES OF MCRB STOCK ***