On May 11th, Datadog printed a new all time high of $201.70 and closed the day at $202.32. These were the highest prices $DDOG had ever seen.
Was it too high to buy?
On that day, I bought the June 230 calls for $6.25, knowing full well that if I did in fact buy the top -- the most I could lose was limited to the $6.25 (or $625 per contract) I paid.
Did I sweat the entry? No.
Why? Because my risk was limited to the premium I paid. No more.
Then this happened:
At 12:04 mountain time, these June 230 calls are trading for $51 per contract.
Was I a fool for buying the all-time high? No.
Can the stock totally roll over here, taking my profits with it? Yes.
