To The Moon

Hello everyone! Today I want to share some option strategies with you!

1.

Earnings trade on $Datadog(DDOG)$

Earnings Release: Nov 7th before market open

Expected Move: 9.4%

Entry: STO calls on the Nov 17 exp 105 strike

Exit: Roll calls forward and upward if the trade gets into trouble. Otherwise, will let expire worthless.

Analysis: DDOG has been on a downtrend congruent with the market before this recent rally. However, DDOG has not recovered along with the market rally ... looks coiled and ready for a big spring up if earnings and guidance comes in better-than-expected. The earnings expected move is almost 10% and IV is over 100%. DDOG can swing big as evidenced by previous earnings moves. A 20% upwards move from its current price positions the post-earnings price around 98 (based on Friday's close). There is a small unfilled gap at the 105 level (btw ... gaps don't always fill).

Note: In full transparency, we have a long position on DDOG and would prefer it to bounce up big post-earnings.

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2.

Can $Tesla Motors(TSLA)$ fill that gap back up to 242 ??? We will be watching to see if the upwards momentum continues on Monday.

Our optionselling plan is to sell covered calls on the Nov 10 expiration, strike tbd (aiming for 250 or higher if we get another strong move up on Monday, otherwise will target the 245 strike).

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3.

Finally, our optionselling re-cap for the week ended Nov 3. Traded in two accounts again this week.

Net premium booked as profit = will post the numbers on Monday/Tuesday this upcoming week after our Friday expired positions get updated by our broker in the Realized G/L Summary.

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