Coupa Cloud Bubble Pop
Updated
Trading at > 25x revenue. That's right revenue, not earnings because this POS loses money.
Cloud bubbles bursting everywhere on the market, I think this one is next.
Bought some $140 puts on open, earnings on Tuesday.
Cloud bubbles bursting everywhere on the market, I think this one is next.
Bought some $140 puts on open, earnings on Tuesday.
Comment
25 P/S ratio, you'd think this was a biotech company.Should be trading around $30, heck, they can't even make a profit. While they have decent growth, SGA and R&D costs are increasing faster than revenue.
The big drop probably won't happen until their growth stops. That's what happened with ANET and FFIV.
Comment
If you're skittish I'd flip the puts here and take the small profit.I'm in it for earnings after market close, remember earnings are always a crap shoot.
Comment
Flipped some of my puts today, will only lose a few hundred on this trade if it goes the wrong way. If you'e skittish, just sell some of your position now before earnings... (Though if this goes down, I think it' gonna go down big. Investors look skittish before earnings.)Remember, intraday movement is not indicative of which way earnings go.
Trade active
So glad I flipped some before earnings. Decided to keep the 140 puts this morning and added a little $150.COUP usually closes gaps, it's a matter of when. Will probably close this position out soon since I'm even. Probably tomorrow.
Comment
Pretty good chance it forms a doji today, I'd wait until the end of the day to buy puts if you haven't already.Was too busy to post this morning.
Trade closed manually
Flipped the 150's. Holding a couple of 140s and that's it now.Looks like I'll make money off of this, can't lose now.
Comment
At this point it looks like a failed break out. All the idiot pumpers who bought after it gapped up are going to panic and dump the next couple of days.The other scenario is that it goes sideways until the market tanks on Fed meeting like last year.
Comment
All this hype, and their balance sheet actually went negative for tangible assets this quarter. Of course, nobody looks at balance sheets in a bubble.Comment
Very much surprised by this rally the past hour. Looks like I might lose my profits from flipping puts yesterday. Holding my 140 puts, but not actively trading this pump, this stock is acting very unpredictable right now.My best guess is a double top before it goes for the gap fill below, but who knows. Will flip the puts if we get a gap fill before expiration.
Comment
Would appear to be a breakout, if it does it's headed to $175 or so.Keeping the 140 puts because it's about worthless now and it was all profits anyways. Definitely not touching this. I bet it comes back and closes that gap below, probably next earnings.
Comment
Not sure what the hell this crap is doing, still holding those 140 puts and still expecting a gap fill eventually. COUP hasn't left a gap open since it started trading, so I see no reason why it would leave an open gap here.The big question is when....
Trade closed manually
Not really how I pictured this to go but I made money on this trade so I closed it out.I expect this to close the gap, so probably gaps down tomorrow then heads back up. This stock does make for good TA, tends to whipsaw, so I'm done with it for now.
Comment
LOL, there's your gap fill. Didn't think it'd do it today.No idea where it goes from here....
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.