Sell OTM calls.
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Theoretical question is impossible to answer. Case by case.
Hedging an existing postion?
Sell covered calls? limit gain, still unlimited loss.
Long puts? unlimited gain, limited loss. need a little cash standby or use a little margin.
Open a new position?
Long underlying, unlimited loss and gain
Long call, unlimited gain and limited loss
Make your judgement call.
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TWLO and SQ are roaring.
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could you explain how to interpret the red and blue arrow
Red arrow means still trading within the triangle, support is the bottom up trending line. Even so, usually it would either break slightly below or reverse before hitting.
Blue arrow means breakout, would establish a new ATH higher than $101.15. Careful with fake breakout, the norm is +3% above the resistance downtrending line to confirm is a true breakout. So if you go long upon breakout, need to place a hard sell stop just below the support line.
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@marcus335 Any plan to scale into new ideas in this correction or sticking with TWLO, UI, and SHOP? My cloud portfolio comprises four stocks: TWLO, SQ, VEEV and OKTA. Sold off SPLK and SHOP and they have yet to pull back low enough. Was thinking of TEAM like @pandeyathotmail, but it keeps shooting up.
I’ve started watching SPLK and OKTA.
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MF pumping OKTA hard. Many articles recommending OKTA. After the first article, scroll down for five more articles recommending OKTA as the stock to invest for long term.
Cybersecurity Stocks: Zero Trust Boost Expected At RSA Conference
“The modern world demands ‘zero trust’ approaches to security, which in turn are predicated on effective Identity and Access Management (IAM) to ensure every user and entity is permissioned, authenticated, and entitled per defined policies and constraints. We believe pure-play vendors like Okta, Ping Identity Holdings (PING) and CyberArk are the largest beneficiaries.”
In addition, Needham analyst Alex Henderson is upbeat on Okta.
“We continue to believe that Okta is becoming the de facto leader in cloud identity and see identity as a crucial element of Zero Trust network architectures, which we view as the future of security,” he said in a report published on Wednesday.
Must own one of the three: OKTA 
, PING and CYBR.
Salesforce Leads Five Top Software Stocks Near Buy Points
The IBD buy point is a buy signal for momentum traders. The five stocks mentioned in the article are: CRM, SPLK, TEAM, AYX and CYBR. I own none of them and interested in SPLK and TEAM.
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Sold off SQ. Look risky to hold on to.
Cut TWLO by 1/3, 2mrw earnings so reduce a little exposure, hope to buy back after earning.
Update:
Market is still a raging.
Joining the euphoria, decided to buy 100 CFRX this morning, … shoulda buy 10,000!
Market is messing with me.
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OMG, I hold huge numbers CFRX. Will take some profit tomorrow
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Was a mispricing this morning. 10 for 1 conversion, should be $7.30 (yesterday close), it traded at $6.25, so I bought, the account doesn’t have much cash in it so can’t buy more. Now is about right 
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Then no point to sell, just hold
Did you notice, TEVA was lowest around $6.13, now it is $12.06 closing, kind of penny stock, grown up.
There are few stocks growing, review yourself
TEVA
STNE
ENPH
SEDG
TDOC
RUN
TWLO is down in earnings. It’s most likely the forecast of 30% revenue growth this year which would be a big slowdown from 65% in Q4. They are projecting Q1 growth of 44%. I’m sure they’ll get asked about the slowdown in growth.
The chart shows it might decline to $115-$125 zone is why I cut 1/3 off. Shoulda cut 100% off 
It is bouncing back though. I have placed GTC purchase of calls 
equivalent to price $120, prospect of getting them 2mrw is not good.
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TWLO: I screwed up the EW interpretation. Is actually in wave ii (hopefully over) and not wave iv. Theoretically, wave ii can retrace the entire wave i i.e. all the way down to $90. However, in this raging bull market and fundamentals is still solid based on recent earnings, I believe worse case is $110. Shoulda sell all instead of just 1/3 
Now have to console myself using an Ah Q’s mentality, wave v is at $163-$211 where a damaging pull back would happen.
Ubiquiti bombed. Service provider revenue is down yr/yr which caused total revenue to bravely grow. I need to see if this is a pause before 5G spending or a new trend. EPS was up 21% due to better margins and share buy back. It’s pretty obvious he’s trying to go private.