MDB is bullish; consolidation near support suggests another leg higher.

So with that today, guys, um uh just not quite yet. Sorry. Uh we're going to just be focusing today on a trade MongoDB. All right. We're going to first focus on this trade setup and that tech software beast.

I have a call set uh potential call setup and as after we do some charting on this play, we're going to then get into that educational of a deeper understanding of gamma and then continue on.

MongoDB has been up now for about 8 days. Okay, sharply pushing up after gap down uh from the 420 area. Now, with that, I do think we're consolidating for another leg higher.

As we've been pushing up, now we're starting to wick into this zone. This is saying buyers are really liking this level. They could try and push up for another leg higher. And jump.

And just from there, we have two hits, three, four, and then price action here. Guys, I've mentioned this before. This strengthens my trend line.

We break below here, and then we wick up into this level and then we drop below and then we come up and reclaim it. Not just on a daily basis. This hap, it took a few days, but then look at that.

After we recovered, we thought we were going to break down. We capitulated all the way up and set new all-time highs all the way up here.

Now, since we're coming back down, my trend line's a little off, but now we're wicking into this trend line, just kissing it. Price actions coming down here, making a lower high, and then we gap down all the way down here. And now we're shooting back up.

That is kind of the environment for MongoDB now. So, now what am I looking at? I think this trend line as we now have a few more hits to the upside, it switched from support, it's now resistance.

But near-term, I think we can have another leg higher for support.

Um because of this right here, this support shelf here at 36426. Price today is continuously trying to push above it. Okay. So, I'm still bullish on MongoDB right now.

So if we have a bullish setup, I have to find some resistance levels where I think MongoDB is going to stop. So with this, I want you guys to go all the way back over here. This is to the November 3rd, 2025 high.

This red bar candle here. A lot of resistance here. As we see, we're wicking into this level right here as well. heavily traded here at that level. So that is 38544. All right, that is a major pivot top resistance level. Write that down, guys. You'll need that later.

All right, and lastly, glaring where we gapped down from. We left a huge gap in the charts here up roughly at about 410. I know that's not to a T, but you want to anchor to that to that red candle.

Sorry about that. So, with this two guys, why am I bullish on? It's continuously putting up. I'm I'm uh I like this relative strength index reading here. This is the momentum reading on the daily.

This is still reading at 47. This still has plenty of room to push to the upside before it's considered oversold territory. That would be upwards of 70. So, right now it's sitting just about at that 50 mark.

If we can nudge a little higher, I do think we can eventually push back up into this level.

All right. So, right now, we're sitting at 368. This is a play where I'm going to look for a strike or my target from anywhere from about 365 360, excuse me, 360 to 365 to 370. kind of in that range is where I'm looking for a play a call on MongoDB.

Awesome. So, as Jake said it, we are now looking for 360 365 to 370 for a call play.

So, if our target say is at 370 on MongoDB, right now we're at 368. gamma is going to be much more high or much much more uh high. So small price changes here, gamma is going to amplify a little more.

Let's dive into the options chain. See if we can translate this MongoDB call into a setup. All right, as Jake is now going to be pulling up IBKR, which is what we use to look at our options chain and looking see, we got all of our numbers down.

We got our 360, 365, and 370 that we will be looking at on that chain.

All right, guys. I have MongoDB MDB up here and well eight days out. Tabby, am I going to look at this 8 day out contract? Not for me. Not Not here today, guys. I'm looking at this November 20th, 2026 call.

This gives us 43 days out. So, say we push um we're consolidating now right about at that support level, as I was saying, at about 364. Um, I think 43 days is good enough for time uh for a thesis to play out.

So, right here, Tabby, this is just a quick recall from yesterday, guys. Okay. So, 360, the delta is at 601.

Think about it. Am I going to pay for certainty? What comes with certainty? Is it um conviction? Is it cost? Conviction. Yes. Conviction. Yes. And cost. And cost. That with a higher delta play, it's going to cost a little more.

So, I'm gonna look for I like a 0.5 delta a a little better. That's why I like this 370 strike right here.

So, we're slightly in the money. Mhm. And this is right sitting at our target. So, if we just move up, we already hit that today on MongoDB. We pushed up to 372. We're coming in a little bit about 368, but if we look to close above, I bet we break that trend line and push higher.

Yeah. So with this play, I'm looking at the 370 strike based on the options environment. I don't like fighting the trend. I'm looking at the put call ratio, which is bullish right now.

This means big money has kind of um they're buying more calls than they are puts. That's why the ratio is under 1.0. So I'm not fighting the trend.

And the environment, this is a cheap environment. The 52 IV rank is coming in at 20%. Now, we'll dive into our implied volatility arc down the road, but right now, this environment says cheap, cheap. So, we're going with the trend.

We just need a slight move to get in the money for our options call. We're 43 days out, so we give our trade some time to play out. And we have a delta slightly in the money. Yes, this is the play that I'm thinking for today.

Yeah, I'm liking this play a lot. this is a yes on MDB with that $370 call because that delta is at a 0.57 which is right in our golden zone. The IV rank is 20 which means we got cheap premiums.

The strike sits on a support line. So that is really good for us as well. And the flow agrees via the PC ratio. That P that put call ratio is really in our favor. So this is a really really good call.