After closing yesterday’s trading session strong…
I’ve come across an $11 stock which caught $307K worth of call option buyers.
That’s a sizable bet for an $11 stock… wouldn’t you agree?
|Ticker Code||Ticker Name||Ticker Industry||Price Change||Average Volume (50)*|
|SHOP||Shopify Inc||Software – Application||20.56%||2,733,010|
|WORK||Slack Technologies Inc||Software – Application||-20.03%||25,956,387|
|MSFT||Microsoft Corporation||Software – Infrastructure||10.30%||34,641,004|
|IDEX||Ideanomics Inc||Software – Application||70.08%||65,518,364|
|INPX||Inpixon||Software – Application||-30.83%||7,338,170|
|NETE||Net Element Inc||Software – Infrastructure||82.25%||3,175,189|
|IWSY||ImageWare Systems, Inc. common stock||Prepackaged software||0.00%||159,768|
|FSLY||Fastly Inc||Software – Application||39.34%||11,578,476|
|DOCU||Docusign Inc||Software – Application||26.95%||6,510,871|
|SQ||Square Inc||Software – Infrastructure||26.87%||15,136,096|
|CRWD||Crowdstrike Holdings Inc||Software – Application||5.03%||8,291,856|
|CRM||salesforce.com, inc.||Software – Application||7.58%||5,972,003|
|BB||BlackBerry Ltd||Software – Infrastructure||-12.47%||4,728,849|
|XELA||Exela Technologies Inc||Software – Application||28.30%||15,799,326|
|DBX||Dropbox Inc||Software – Infrastructure||-12.68%||7,149,448|
|TTD||Trade Desk Inc||Software – Application||21.41%||1,865,235|
|ADBE||Adobe Inc||Software – Infrastructure||9.50%||3,209,435|
|FTNT||Fortinet Inc||Software – Infrastructure||-9.60%||1707879|
|CLDR||Cloudera Inc||Software – Application||5.92%||11,728,947|
|BOX||Box Inc||Software – Infrastructure||-1.41%||2,871,271|
Have you heard about Cloudera Inc (NYSE: CLDR)?
As an up-and-coming software company, the stock itself has more than doubled in price-per-share since March.
On top of that, I’ve noticed it has become a favorite in the mid-cap arena amongst Wall Street’s biggest call option players.
Yesterday alone $307K worth of CLDR July 24 11 Calls were purchased…
And today it’s ranking on the top 20 software stocks which financial professionals are analyzing…
Cutting straight to the chase, the bulls are out. The million dollar question is “will they be right?”
Here’s my take…
CLDR is entering day #4 of trading sideways on its 50-day simple moving average line, which is the red line shown in the chart above.
What I’d want to see to take a bullish position on the CLDR July 17 11 Calls or the July 17 12.5 Calls is as simple as this:
- A green Nasdaq
- CLDR trading in a bullish trend
- CLDR’s common stock finding buyers
- Increasing call option liquidity on CLDR
- A hold of its 50-day simple moving average line
But what if markets witness a “Friday fade” and CLDR moves to the downside as a result?
Below its 50-day simple moving average line, and CLDR has room to drop, meaning we could make money if the stock crashes via a quick put option move.
That’s the beauty of options – the ability to leverage money trading both ways.
While I’d consider a bearish position in CLDR, it would be for a day-trade only. The bulls are in charge of CLDR’s price action in 2020, as shown on the chart above and the call option flow week after week.
I’ll be in touch with updates and a watchlist prior to today’s closing bell.
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.