PSTG Longer-term Call

PSTG got my attention the end of May when their ER shot them up. They pretty much consolidated all of June and July, so I decided to play them to break out to new all time highs. Given their past move up and the consolidation pattern, I estimate a goal of around 50 if the consolidation is around 50%, so I entered a call on July 31 way out of the money and very long to expiration. I feel like they have a good chance to get to 50, but I have no idea how long or how many ups and downs they will take before they get there. I bought a Call 50 with June 21, 2024 expiration.

They clearly broke out today to an all time high and I’m hoping that they meet very little resistance on their way up since there does not exist anywhere anybody who has ever traded them this high.

Since this is a straight call and not my normal strangle with puts, the potential profit if they actually go up that high should be pretty good.

The other thing to notice for those who follow my posts is that the negative RSI divergence from June to mid July did not pan out as they broke out to new highs.


Well, they broke out earlier this month as I said, but then proceeded to trade a little down and to the right. The following chart is the daily for 2023.

As a call holder, I guess what I’m hoping for is a repeat of what happened the beginning of June. My call doesn’t expire until June 2024 so I have time to let them trend upward for at least a couple months.