Schwab Network on $OKTA (Nov 2, 2026)
OKTA's decline looks stabilized around 190 with strong 50-day moving-average support, so the speaker sells November 185-195 put spreads for about $4, citing extremely high implied volatility and no earnings until December 1. But the 5-day EMA has slipped under the 21-day EMA and the 63-day EMA near 187.53 is broken, so further weakness is possible.
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Okta is the third stock, a software company that we saw decline with the emergence of the SaaS model, but it has certainly improved over the past six months . Its stock rose by more than 160%. Scott, what do you think of Okta?
Yes, and before I discuss the matter, I would like to clarify that I did indeed sell some put spreads this morning. But there is strong support, strong technical support at the 50-day moving average, which was there earlier this morning.
Implied volatility is extremely high, making options very expensive. So, what I plan to do is sell November put spreads at 185-195 for about $4. The price was trading at this level earlier today.
The stock rose about three dollars from its lowest point. This is what I plan to do. I believe this artistic area provides support.
Given this, there are some important things. Okta will join the Standard & Poor's 500 index on November 4. Their profits will not be disclosed during the time period of this deal.
Their profits will not be announced until December 1st. Therefore, we do not have this incentive.
Here we have two directional lines moving towards each other. Our highest level was at 235. We can draw this downward line connecting the subsequent highest levels. But also, we had an upward gap after the earnings announcement.
This gap gave us a notable bottom point to watch that connects these subsequent bottoms. So far, the current decline appears to have stabilized around this level of 190. As for our horizontal levels, 235 is our previous high, and our next high is near 228, and these are the two red lines.
But here , we note a recent dip at 184. Then these earlier highs stand out, followed by subsequent dips after the upward profit gap at 156. So, there are very clear areas that many traders are likely to be watching.
Now, we see that the five- day and 21-day exponential moving averages are very close, as they are around 210. So, the faster average has started to fall below the slower average, indicating further weakness, and possibly a shift in the trend towards the downside.
The 63-day exponential moving average , which is at 187.53 in gold , also represents a break of the trend line. It should also be noted that the intersection of the faster average with the slower average, and the intersection of the five-day average with the 21-day average, has not yet occurred.
It is important to wait until these things actually happen, and until the end of the day's trading , to avoid rushing into a decision based on a false signal. So, we also note that the red downtrend line is still standing.
We have also fallen below the midline at 50, indicating a further downward shift in this case. As for the trading volume, it seems a bit strange. We have many small dots, with a very delicate appearance .
Most of these points are located between these levels, approximately 170, 190 and 207 . These are the key areas to monitor from a trading perspective, especially with regard to trading volume.
Well, looking at Octa, we find that it has fallen by approximately 3.9%, or nearly 4 %, and is currently trading at $19,995, which is slightly below the $200 level.