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Home › Forums › Swing Trades › Breakout Trade in CYBR
This stock had a massive run on earnings last quarter and has formed a cup and handle pattern. Key resistance is at 72.50 and it tested it recently only to have pulled back.
This is one where I do think it goes higher and quickly, but I would not be surprised if there was a stop run, especially if tech gets hit.
That means it’s a good idea to structure your risk with “full risk” in mind.
Buy to Open CYBR Jul 80 Calls @0.90 or lower
This is a super aggressive play… these are 15 delta calls, so it means according to the options market it has a very very low odds of success.
But the options pricing rarely takes into account how momentum stocks like this can run. All it needs is to catch an upgrade and clear that support level and we’re off to the races.
Since we’re assuming full risk, it’s good risk management to sell half on a double. So if the calls end up with a value of 1.80, close half. That would require a move to 70, which is very doable here.
Nice move, time to bail on half
Sell to close half size CYBR Jul 80 Calls @ 1.80
Going to bail on the rest WITH INTENT TO RE-BUY
Sell to close CYBR Jul 80 Calls @2.70
Stock’s a bit extended and the breakout is now obvious so I’m now looking for the longs to have a stop run. If that happens I’ll reenter.