$CRWD · Verified Investing · 2026-11-09

But first, I have a great setup and it's on CrowdStrike. This is one of the CrowdStrike, CRWD, package software. Let's get started.

If you follow that ticker, it's CRWD, and he'll give us great technical analysis on what to look for on the chain. Okay, friends. Like I said, I'm watching Crowdstrike and it's up about 3 % today, okay?

But in the last three days , it has sold-off quite badly. We have been experiencing price declines for four consecutive days, then the gap down occurred last Thursday and the price decline continues.

Today we are trying to turn around, but notice , we are subtly creating higher lows from these three candles , do you understand ? That is, our lowest points are gradually rising upwards, right?

So, I'm looking at some support levels now , and that's this pivot shelf at 219.35. We hit this level three days in a row and have since bounced back up , okay?

Also, we have a gap fill here. It is at 206.74. In the case of this gap fill, the price closed on this red bar candle, and the next day it gapped up, rising above the 219.35 level and moving higher again.

Despite being on the upper side of the chart, I'm actually looking for a short-term call play here. This would be a long position in terms of equity , but when we're talking about it as an options trade , that's why it would be a call , right? So I think it has a chance to go even higher.

Since the price is now at 222.40 and support is at 219.35, I am now looking at two strikes—220 and 222.5. We will take a position right between 220 and 225.

Where exactly are prices getting stuck now? This is the wide red candle from which we went down and then went up again. The price is trying to break through it, but it is stuck here for the day.

Well done Jack, where is your target if this idea is successful ? This can be understood by looking at the trend line. Can you see the dashed trend line here? It also gives us a third level to play.

As you can see in this green candle, the price moved up and back to the middle of the trend line and bounced back from there. It's the same here. The price went up and bounced back when it was going down.

Exactly the same thing here. Where did the price find support before the gap down? Just last week this dash trend line. Now that we have broken that support and moved down , it will now act as resistance on the upside.

So now if we have a trade thesis , I think Crowdstrike can continue to move higher and it will have two-way resistance here. This is the gap fill at 241, where we broke down and the dashed trend line , where we also broke down.

So if we can find a contract to take profit between 230 and 240, that's what I'm looking for.

And in terms of going down , before we start working, Jack , what happens if this plan doesn't work ? Well, I will always take a position by DCA. I would start small and give myself the opportunity to change strategies if necessary.

Because prices don't always go my way. Now, if it goes against me, as I said, we have a chance to fill the gap here at 206.74. And let's talk about this candle, 217.50. Okay? We are standing on a lot of support here.

I think it might take a week or two to reach this level. So I'll give it about a month. I've been looking for this time for this play. Finally, the RSI is at 40. And this is on the daily chart.

So we are now somewhat close to the lower limit. We have enough space. There is enough upward momentum for buyers to come in and push the price higher.

But now if we're talking about a spread like Crowdstrike or a new software company or Tempest AI , which I usually trade, the spread can be big, right? They can be a bit unhealthy.

They are much more unstable. As soon as the news arrives, they move like crazy.

like let's say today zero day options are increasing for volume in Crowdstrike, okay ? Now it doesn't just mean that if you saw that, what would your thoughts be? I would say that there is a strong belief that it will rise to the top, on that very day.

Yes. So it would have made me interested in going in that direction. Yes. That is wrong. Oh, no. Yes. If we look at zero day options and the volume is increasing rapidly, that does n't mean it applies to tomorrow.

Okay. Well, it may be for today, but it won't imply faith for tomorrow.

Okay. I'm watching Crowdstrike here. And like I said, my plan for this trade is about 11 to 14 days. But I always double the time, in case the price goes against me and I need to increase the position.

So before we go into the chain, put-call volume is bullish today. Almost twice as many traders are buying calls as puts. Ivy ranks 82nd, as you can see in the metrics here. So we have to spend more now, even though I think we made an earnings a few weeks ago , we still have to pay a little more for premiums.

So we will need major moves to reach break even , if we do.

Tabby, do you remember which strikes I was talking about? You said 220 to 225. 222.5. So 222 here for December, that gives us only two options. 220 and 225. This is a big gap.

Yes. Yes, you said 222. I see, yes, there is a big difference between them. Oh yes, no. Skip it. I read it wrong. Sorry, I saw it said 200. So yes, 220 and 225. 222.5 No, hmm. Sorry, I only see two. Two two two. Oh, there's a 222.5. Excellent.

This is it. 39 days left. So great. Let's look at the 45th day. Okay. I like it, it's 39 days left, so it's pretty good. It's been about a week. We have about 39 days for our thesis to take effect.

And I'm looking at the 222.5 strike. Here the delta is coming in at 0.751. This is a strong delta because we are already in the money if we take this contract because the current intraday price of Crowdstrike is above the strike.

That's why we're already paying a price for it in some way.

Um and now Tabby, give your opinion on the open interest and volume on this strike. Okay. Open interest is at 571.

Okay. Now before we go any further, do you like or dislike this 571? I like it because it's within the range you asked us to look at, between 500 and 1000. Yeah, I just told you to watch it , but why is it good, Tabby?

Because it shows that many people are staying there.

Yes, but don't we want to make sure there's someone on the other side of the trade? Um, yeah, looking at 571 and the volume is coming. Do you like volume read? Volume, meaning it is not zero.

Yes, it is not zero. About 40 people are coming. I said it would be better if it was about 50 volumes. So, we are 10 short.

But , what I like, friends, to go a little further, is the strike of 225. Today, 275 new volumes are coming here.

I see that too. It's more like support assist with that level. Is it worth changing our preferred strike if interest is high? So, you can do it. If we are, that's a good question.

So, if we want to do it, we have to give almost.

Okay, let's see. This strike, if we buy, is around 2100. Hmm. Okay. If we buy this 225, it will be around 2000. So, we will save about $100. Our delta is a little low.

But Tabby, what concessions do we have to make in exchange for this? I want you to think about this. Turn the camera towards us, please. With low delta? Um, the delta is at 0.552. So, it's still a strong delta.

I want you to think about price action now. Now you choose, Crowdstrike is having a good day now. Yes. Okay. It has increased by 4%. And it is now rising to 224.88 on the chart.

Hmm. So, if we take 225, we are out of the money. However, if we get that, Crowdstrike could grow even more. I mean , right now it's there, like, about 4 cents.

Okay. That's right. Then, we can earn more money. Now, take it one step further. If we pay 2000 or 2100, what will be our break-even price? Will we break even faster at the 225 strike or the 222.5 strike?

I think it will reach 222 quickly. Isn't that right ? Or not? I won't say anything. I want those watching at home to help him. Instill confidence in him about this. Because of Delta, right? If the delta is high, it arrives quickly.

Yes, but we pay more for it. We give. So, if we give more, we are starting from the bottom.

So what will you decide? The risk of giving more or the possibility of getting more money ? It depends entirely on you. Oh, I don't like it. So many decisions! I do n't like it at all.

Okay. So Tabby, what can you do to take it one step further? Today, let's really think and use our analytical skills. No more indicators. What else do we have ahead of us, okay?

Um, let me see. You can see which delta you prefer, or check the bid-ask spread.

Oh, yes. Oh, bid-ask. You can always take things a step further , Tabby. So okay. Now, there is a difference of 60 cents between 225. In the case of 222, the spread was much higher.

Yes, about 80 cents for 225. Yeah, so keep going then , Tabby. I want to hear your confirmation today. So what was it? Was the big spread at 222? Yes.

Yes, I think it's bad because it costs more. Isn't that right ? Therefore, wider spreads can result in more slippage. And in addition to incurring additional costs, we may face even greater losses.

Hmm. I know we are adding a lot of single legs together. I'd rather go towards 225. Okay friends, you heard me. Let's get started. I support this move.

Okay, good. And I liked it. Tabby? Seeing the bid ask makes me feel more comfortable with the decision. This is a fair move. I'm really glad you brought this up.

Okay Tabby, get us started with the trade. Okay, we decided to take a call on CrowdStrike and we... Let me take another look at IBKR.

Okay, we're taking the 225 strike because the bid ask is more attractive to us than the 222. And the 0.5 delta is excellent. It is within the limits of our great delta.

And just today, volume 275, which is really good, I mean very good. And our open interest is 525, which is in a good position for us. So I think this is a really good trade for us.

Come on, Tammy. Great job. Friends, you see, he has gone through all the stages. He was a little hesitant, but with a little help he continued reading the chain and we succeeded. We found our trade setup for today.

To give you an update, we will spend about $2,050 on that spread. And we are buying this contract. This is a call. It will end on December 18th, which means we have 39 days to work on it.

We are spending a little more on this. We ...no, not a little. We are spending more on this because the IV rank has come to 81%. That means we are at an expensive level compared to the last 52 weeks in terms of premium, but we found the right trade.

And finally, based on today's volume and open interest, we will have enough liquidity for a good filling.