A $307K bet on an $11 stock… - InvestingChannel

A $307K bet on an $11 stock…

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.

Dedicated to your success,

Davis Martin
America’s #1 Options Trader

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.

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