Long

It Happens All The Time - MDB set to reverse big

Updated

This video is an extension of my recent post MDB - bullish "Mar 22 calls will print"

I sent an update with that idea that I have been adding this morning, but didn't explain why. So in this video I explain why MDB is about to reverse big.

I compare the setup to NVDA back in Nov 2023, hope this makes sense.

My confidence that MDB will be trading in the 400s next week before 3/22 expiration is very high.

Note

Breakout level is 362. Target by 3/22 expiry = 402-427

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My precise breakout level is 359.38. If it breaks above that it will run like your faucet.

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Not giving this enough time was my initial mistake. But doesn't change where this is headed (400s). I'll be entering Apr 5 380 calls at whatever premium we get this morning - big discount (likely 4.00-5.00).

-Paying up here will give huge gains.
- Look back to Nov 6-7 2023, we are just filling that 347 gap this morning and it will get bought up quick so don't be scared to load up here.
- My prev. target was 420, but since I am extending the expiration I'm actually seeing this running to 447 (+100 points); the 380 strikes will be worth 67.00 if I'm right.

Yesterdays breakout level was 359, but that level changes when a lower low is realized, so if the low is around 347 then the new breakout level will be 353.

Hopefully you can see how shorts have no where to go near-term. With MDBs volatility breaking 353 can happen within the first hour of trading today - and thats all it needs.

My style is unusual to some of you probably but I'm not worried here, moreso grateful for the discount and adjusting accordingly.

Note

Entered Apr 5 380 calls for 2.75

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Breakout level is now 348. Good luck bears, cover and take the win. This bounce will be epic.

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Apr 5 calls already up 40%

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Broke out above 348.

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Sold half of the Apr 5 380 calls that I entered this morning for 4.18 (+52% gain). Holding the remaining half until they get in the money.

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If you followed my lead this morning and entered the Apr 5 380 calls (despite the initial Mar 22 play not working out), then you secured 52% realized gain with my update midday, and the remaining calls closed at 4.70 (up 71%).

- Not selling those yet, this is just getting started

- Don't get caught up on occasional losses, the show goes on. Gotta realize the opportunity like with the play this morning

- Next couple days should be fun

Note

Took profits on half of my remaining Apr 5 380 calls at 7.30 (165% gain). Holding the rest for the continuation to 380-400 (potentially higher).

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Loaded the boat with Apr 12 370.00 calls for 7.50.

(1:10pm 3/25; underlying 354.54)

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Last chance to add Apr 5 and Apr 12 calls for a discount. I added PANW and MDB calls, tomo 3/28 is the catalyst.. you'll see.

Also entered MSFT calls

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Sold my Apr 12 370 calls for 6.40 (-15% loss).. could have been a lot worse, they were only 1.50 yesterday.

Here's the deal on MDB:

- still bullish, this is setting up for a major move in the coming weeks.
- However, High probability of one last pullback to make a higher low around 347-352 (point target 350) early next week. If this occurs it will kill the Apr 12 370 call premiums again. I Will be Re-Entering calls if we get that pullback, but I'll be looking at the Apr 26 expiration.

~There is still a chance this continues higher to around 372-373 before the final pullback, so if you don't mind the risk stay in and make some profit on the 370s. If so I recommend a tight stop loss at 357. Not financial advice (this could turn on a dime here).

I don't have the time to watch this closely today so I'll re-analyze market this weekend and have some fresh plays for next week.

JerryManders

Related publications

Mar 22 calls will print

by JerryManders

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