Crowd Strike – CRWD – Playing the Earnings Gap

Earnings is a difficult one to handle. I am not sure how to handle a stock before earnings :(. Any guidance is always welcome. Sharing some post analysis of my trade on $CRWD since 03/11/23. #CrowdStrike #earnings #stocks. I got in CRWD at 188.60 on 03/11, a pull back buy off support from 21EMA – a good spot to buy on hindsight.

There could have been 2 more potential spots that I could have got in (marked by the two circles). When I added CRWD again on 02/02 and 06/02, I was already up 61%~ on my initial buy. Adding some more shares as it broke from a consolidation around this time, was the right thing to do; especially considering the fundamentals around CrowdStrike and the #Security Stocks in general.

From there-on, the choice on 15/02 to add on 10 more was a bad one, considering the buy had no basis. It was way off 50 DMA and was extended. I had decided to put my steps in and around the 50DMA and with Earnings on the way, I had exposed myself to unnecessary risk.

When you are in stocks, you should always be wary of what the other leaders in the sector are doing, when they are reporting as any impact on one stock can have an impact on your stock as well. $PANW had a bad earnings and

@CRWD felt the impact on 21/02. Being based in Sydney, I don’t monitor movements of stocks during the night (a handicap). While, I noticed Crowdstrike pre-market being lower at 291$, I moved my stop loss around 50DMA factoring in logical support. I didn’t want to lose any more than that. My previous stop loss was around 290$

As luck would have it, CRWD hit my stop loss at the worst value possible at 278~ ish and was back up :). They reported great earnings on the 06/03 and I was left with an empty bag 🙂