Tech Alert – (DDOG) June 23, 2025 – TAKE PROFITS – SELL

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

 

Tech Alert – Datadog, Inc. (DDOG) – SELL TAKE PROFITS

SELL TAKE PROFITS Datadog, Inc. (DDOG) July 2025 $105-$110 in-the-money vertical BULL CALL spread at $4.80

 

Closing Trade

6-23-2025

expiration date: July 18, 2025

Portfolio weighting: 10%

Number of Contracts = 24 contracts

I liked Datadog (DDOG) in the short term, and the Double D’s trade has done remarkably well, so much so that we are taking profits right now. High volatility has created a rush into the cyber defense sector to protect software from malicious actors. This is a great subsector to be in.

Cybersecurity stocks are breaking out this morning, and I played it successfully. I am patting my back right now.

The subsector is outperforming the broader Nasdaq, and playing cyber software stocks is the right strategy in the short term.

Here are the specific trades you need to close out this position:

Sell to Close 24 July 2025 (DDOG) $105 calls at………….$24.70

Buy to Close 24 July 2025 (DDOG) $110 calls at………….$19.90

Net Proceeds:……………………..…….………..……………………$4.80

Profit: $4.80 – $4.20 = $.60

(24 X 100 X $.60) = $1,440 or 14.29%

 

 

 

 

 

If you are uncertain on how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.