DDOG Trade on Aug 5, 2021 15:15 from Marius: Tradervue User Stock Trades.

Currently in the middle of the busiest of the corporate calendar with earnings. More in-play moves from these specific catalysts. There are bigger picture economic reports continuing to be released with key jobs metrics. Overall markets seems to be undergoing a "stealth correction" with mixed performances but not overly weighted to the upside nor downside. The breadth deteriorations have been met with relatively stronger components. Less pronounced rotational factor shifts as seen in 1H21. Overall earnings have been pointing to continued growth. A noticeable theme I saw this week was with more so company earnings trading lower initially but aggressively bought. A few of them have recovered notable ground from the prior weeks as well. There are certain areas of reporting that were highlighted this week within the health care sector as insurances factor in increasing operating costs due to rising delta variant virus cases. The bond market and yields seem to signal some concern but liquidity and interests rates with monetary policy are continuing to underpin the overall market bid.

Fundamentals In Play Analysis

Datadog posted a triple beat on EPS, revenues, and guidance. Revenue grew 67% y/y. They had 1610 customers w/ an ARR of 100k+ showing a 59% y/y increase. They also added a segment for cloud security. IGV the software/cloud service industry has been seeing relative strength within the markets recently.

Quantitative Analysis

Intraday Fundamentals

RVOL 4.52
AVOL 2.58M
ATR 4.54
Beta -
Volatility 4.13% 3.31%
Short Float 6.95%
Shs Float 211.16M
Inst Own 76.40%
Market Cap 41.05B

Options Statistics + Tape Reading + Order Flow + Dark Pool Levels + Flow Sentiment

SI 8.035
IV 47.97%
IVP 4%
P/C 0.332
VWAP 131.918

Options Positioning

OI 253 322
VOL 319 222
Delta -.02 -.01
Theta -.10 -.03
Vega .00 .00
Gamma .01 .00
Prob T 5.78% 1.49%
Prob ITM 2.93% 0.76%
MMM +/- 6.055
IV Series 81.57%

Earnings Statistics

Technical Analysis

Trade Risk (risk:premium) + Position + Size + Allocation Management & Review

1/4RR w/ 32% allocation. Moderate/aggressive positioning. (A++) setup (A/B) execution. This was a trade to press into while managing the risk. I think I could have allocated more to this trade close to 50% as a 1 DTE A++ setup. The only thing holding me back was that I have not traded this stock before and the options liquidity in the order flow. In some cases setups with higher conviction but lower liquidity there is edge. I have experienced this more recently and have noted it but still keeping in mind managing the risk of liquidity drying up if there is a failed pattern developing like Lyft this week. (although liquidity and spreads was better in Lyft). In this case it was not as much of a weighted concern with the DTE and specific trade setup within the overall market. Next time need press even more.

Weekly Trading Review

Overall another good week in the books and a great start of the month. I have balanced my physical training, mindfulness + cognitive performance training, and primary occupation balance. Overall sleep/recovery and nutrition is better.

As far as trading it feels as I'm executing where I need to be and working on the current R/R, positioning, and allocation goals growing my business. This is seen with recent preparation the evening before the trading day, increased multiple positioning + management, and actively scanning for opportunities. This is probably an aspect related to the current market regime in place and in the mid of earnings season. Feels fun and starting to get a better feel for the earnings season's flow as I gain experience while continuing to press and responsibly manage the risks. Grateful for my mentors and colleagues that I have the opportunity to take on this journey with.