Shorting $wday After Earnings - Price Action BasedI've been closely monitoring this stock for the past week, waiting for it to hit the 270 level. With earnings coming up (or just passing), the stock has now broken above that 270 price point. This presents a great opportunity to enter a position, and I’m looking at puts as my primary strategy.
Here’s the reasoning: I believe institutions are heavily positioned around this 270 level, and they’ll likely start unloading shares to retail traders. Retail traders tend to buy into the earnings hype, assuming the positive news will lead to further gains. This creates a classic trap that will likely reverse once those institutional sellers start exiting their positions.
For me, the earnings news doesn’t matter much. I’m focused purely on price action and the data it provides. I’ve been waiting for this exact scenario, and the earnings report has now pushed the stock to the level I’ve been targeting. I believe the current price point won’t hold, so I'm positioning myself with puts, expecting a pullback in the near future.
I’ve been tracking this play for a while, and I’m confident in this move. It’s all about capitalizing on the market’s reaction rather than getting caught up in the earnings narrative. If you’ve been following my other trade ideas, you’ll see that my approach has been quite effective in navigating the market. Let’s see how this one plays out!
Remember to always trade your plan, and good luck to everyone in the markets!
