RDDT Calls up 29% in one day before falling away

My Trade Plan Details:

• RDDT Apr 19 $55 calls near $1.50
  
• Stop: Close RDDT below $44
• Target 1: $55
• Target 2: $63
  

My Reasoning:

This is a tough week for ideas. I think interest rate jitters are going to keep a lid on the market moving higher overall, but I don’t see a lot of reason to think things are going to break down, either.

I have been having a lot of success with strong trends like energy and miners lately, but those trends are so extended now that I don’t think right now is a good time to start a new position.

Instead, I am going after a stock that has proven it can make some very big moves, yet the stock has been suspiciously quiet over the last week or so.

I think there is a very big upside potential with this one, while keeping my risk relatively limited.

Love it or hate it as a company, this week my pick is…

My Bullseye pick that I want to buy this week is (RDDT) calls.

My plan for the trade is to get started with a half-sized position on the options I list below, somewhere around the target entry price.

RDDT is a very volatile stock, so the options on it are very expensive compared to options on other stocks around the same price level.

Keep that higher price and volatility in mind.  Personally, I am not going to trade as big of a trade size as usual because of that volatility.

If this trade doesn’t work out, I am keeping a relatively tight stop on the trade.  If RDDT closed under $44 (which is below the recent support), then I plan to take a loss on this trade.

If things work out, I think there is a lot of upside ahead vs the downside risk.  

I think RDDT could see a move to $55 if a rebound starts soon, and even $63+ as target #2.