TopOptionAlert
Oct 21, 4:55 AM
$DOCU NOV20 83C · still actionable
Zone:
$79.72 to
$80.84
Invalidation: close under
$77.21
Objectives:
$85.00, then
$90.00
The math: up 5.9% to the first objective and 12.1% to the second, against 3.8% risk on the invalidation, better than 3 to 1 to the second
This is a swing that started with a simple picture in my mind. The stock closed at 80.28 after rising 4.72% on Tuesday and pressing right up against its 52 week high at 80.61, which means buyers are willing to pay up near the top instead of waiting for a dip. That kind of close tells me the path of least resistance is still higher while that low at 77.21 holds, and earnings on December 3 give the move a date to run toward even though this contract ends before that report.
P.S. Watch for a close above 80.61. That would clear the yearly high and leave very little overhead supply in the way.
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