CRWD Trade on Jun 22, 2021 15:52 from Marius: Tradervue User Stock Trades.

Markets with continued bid support form buyers although with decreased internal breadth readings and notably low bearish sentiment data. Rotational trends in place with volatility metrics decreasing implying less hedging and price action movement. There are still individual components still providing opportunities but limited with less high impact economic events + low corporate news flow. More risk-off, less aggressive, selective for active trading. For portfolio management it is choppy market overall with rotational buyers in control. Cash, bonds, and decreased position sized active management is prudent into 3Q21 and 2H21.

Fundamental Analysis

CrowdStrike was upgraded by Stifel (tier 2/3 bank) from hold to buy / 240 to 300 price target. The cloud software industry has been recently seeing a rotational inflow of buyers. There is a moderate to high institutional ownership of the company with strong support and ratings from a number of analysts. This can create a demand for shares as banks deal with investors based on advisory and recommendations.

Quantitative Analysis

Intraday Fundamentals

RVOL 2.49
AVOL 3.76M
ATR 9.78
Short Float 6.57%
Shs Float 196.34M
Inst Own 70.90%
Market Cap 57.09B

Options Statistics + Tape Reading

SI 2.822
IV 45.54%
IVP 12%
P/C 0.349
VWAP 252.871

Elevated option order flow with momentum on the call side. Notable call buys in the mid session.

No notable dark & lit pool prints. Something I'm looking for in adding more variables in my trades to be more aggressive. Notable sweeps and blocks on the institutional side but I'm still gauging this as I start to see more order flows in different stocks and types of trades. Good to note the heavy call side activity at the ASK and above.

Options Positioning

OI 108
VOL 18
Delta -.01
Theta -0.05
Vega .01
Gamma .00
Prob T 2.03%
Prob ITM 1.03%
MMM +/- 10.673
IV Series 51.62%

Thinner liquidity and order flow then I'm accustomed to here but taking the trade on the more conservative side of positioning within my parameters.

Technical Analysis

Elevated RVOL and over HTF R levels. Volume on the ASK. IV on the lower but up-trending end.

Day 2 AM session profit taking and lack of volume follow through. This played a role in my decision to exit the trade.

Trade/Risk Management & Review

I decided to exit the trade to manage risk due to the lower option liquidity and no overall volume follow through day 2. In addition the security had a higher margin requirement and triggered the RBC model on my account. The trade was not worth the risk and now considered an opportunity cost to any other trades for the week. Overall (B) trade setup and (B+) trade execution.

Going forward I will be increasing my evaluation of position liquidity and margin concentrations to fit within current risk management parameters. The order flow data is starting to add an edge in my trades. If there was notably more volume done here then I'd think position liquidity wouldn't be an issue. I'm also now able to view special margin concentration requirements before placing trades. Alternatively I can manage this by opening a wing to cap the margin.