Question: This main character was genetically created by an alien species.

This particular alien specie are highly intelligent and have numerous abilities such as telepathy, defensive powers similar to magic and can change/morph into any living thing. I wanted to add a certain twist to my main character that makes her different than aliens but have something about her that could change or transition like the alien kind could do.

Before deciding on an ability, I wanted to see if this is even possible for the specie to genetically modify and create her to do this.

Answer: 
Splicing genes for certain traits is common now, specifically with food.

the main concerns with this for humans are ethical.. You could play around with that idea...

But the actually ability is possible. Now how it will interact with moods.. that part hasn't been discovered. However moods like anger affect adrenaline which has effects on skin flushing and heart rate, so it would be a matter of someone figuring out the biochemical changes and figuring how to do 'eye color' change meets 'mood emotional indicators' and linking them.
The idea of a [human-alien hybrid](http://tvtropes.org/pmwiki/pmwiki.php/Main/HalfHumanHybrid) takes you far beyond scientific plausibility, so "genetically" and "possible" don't really apply.

* [Mules](https://en.wikipedia.org/wiki/Mule) are hybrids between horses and donkeys, and they're sterile. That's despite the fact that horses and donkeys are from the same kingdom, phylom, class, order, family and genus.
* Same for most [Ligers](https://en.wikipedia.org/wiki/Liger).

You can't even be sure that the aliens use the same amino acids or the same [chirality](http://tvtropes.org/pmwiki/pmwiki.php/Main/MirrorChemistry). So you're left with the *magic* explanation unless you're prepared to fiddle with the evolutionary history of Earth.