Scott Redler: A Hot Active Sequence in TWTR

Twitter (TWTR) ignited with a Red Dog Reversal buy on June 28, when $34.57 was reclaimed.

I picked up calls.

Then, it gapped with power to clear $35.60 which got me in the stock..

This morning, I said that holding $35.80 makes it easier to stay with, and that it could get momentum by clearing $36.65 on volume.

And we did get that move through $36.65, with Twitter hitting a high of $37.65 this afternoon.

Traders that missed the boat on that initial Red Dog Reversal could have added through $36.64, and been sitting on a decent gain.

Active sequences like this teach an important lesson: you don't have to go all-in on every trade from the get to.

You can start with something small, and then add Tiers as the stock rallies. It's often better to average up into something that's working than it is to double down on a loser.

Then when it really gets stretched, you can take profits to manage the trade.

I've been trimming Twitter stock throughout today while holding onto my calls.

Positions Disclosure: As of July 9, 2019 at 2:34 p.m. ET, Scott J. Redler was long TWTR, UBER, STNE, DIS, NFLX, FB, SYMC calls, TWTR calls, NVDA calls, GWPH calls, AMZN calls; is short SPY, AMZN calls