DDOG should break-out on earningsI am anticipating DDOG to reverse the trend of having more negative reactions to earnings than positive. If they beat earnings and give good guidance, I see no reason why it would not reach new all-time highs.
It has reached this level before and this earnings event gives the perfect catalyst for a break-out past the resistance. This is an underappreciated software play.
DDOG price target: $150. A potential move from earnings could bring it to $125.
I would suggest playing this through calls or call spreads to control the amount you are risking. You could go long the stock to beef up your software exposure if you are lacking in that area because diversification is an investor's best friend. Calls and call spreads are a good way to dip your toes in stock without risking too much capital in comparison to the overall share price.
Datadog
DDOG to 120?DDOG - Currently in a a flat correction and looking for a breakout of the triangle to retest ath. With earnings approaching (mid February) we could see a nice run up to retest ATH. This company has shown strong growth and has generated great returns since its IPO in 2019, nearly quadrupling it's IPO price in 2020. DDOG reported a 61% increase in revenue for Q3 and an outlook of a 62% increase in the year of 2020. Trading Plan annotated in the chart.
Options Ideas
--------------------
110 C 1/29 (High risk: High reward) day trade option
120C C 2/12 (Medium Risk: High Reward) High OI
DDOG ChannelIf Datadog continues in this channel, it will retest resistance at $110, and either be rejected or go for new ATH's. The previous times it has entered the lower side of the bollinger band, it was sharply bought back. Expecting that within the next few days, if not, then I will be selling if it falls past channel support.