OKTA caught my eye on Jan 22 when it hit my high volume scanner on Finviz. It’s had less than a year of trading (April 2017 IPO) and I’m particularly intrigued due to the range that it has been trading within since September. For the past 5 months OKTA has been bouncing back and forth roughly between 25 and 32. Most recently, in January 2018 OKTA had a high of 31.19 and I went long today on the break above and was filled at 31.20. My thesis is that it’s making a new monthly high which is the first step in breaking out of the narrowing monthly consolidation, and therefore should continue going higher. From here, I am targeting a move to approximately 36 and using the 28.8 area as my stop, roughly a 2/1 reward to risk ratio. If the trades is a loser, I’ll lose X and if it’s a winner I’ll make at least 2X. OKTA does not offer a dividend and earnings appear to be either the last week of Feb or the first week in March.
2/20/18 update – Closed out OKTA for 14.6% in a week