We’re seeing a lot of follow thru in names that have been highlighted in previous Under the Hood reports. After a brief shakeout, many of these names are back above our levels of interest and are beginning to work (Pinterest $PINS is one brightly shining example!).
The latest one that has the most appealing setup to me is Datadog $DDOG from the SaaS space.
I was chatting backchannel with our analyst Steve Strazza today and he brought this chart to my attention:
Look at those two failed breakdowns below support! And now, it’s looking like it is getting pretty serious about breaking the magic one-hundred-dollar line and following through significantly higher.
Steve and I both agree that $120/share looks like a reasonable price target if the “momo crowd” gets a hold of this dog.
While options premiums are relatively subdued in $DDOG options, there is still some pretty juicy premium at the $120 level in January options, so I’m going to use that to my advantage in lowering my cost of participation.
Here’s the Play: [Read more…]