Excellent! Smithers, Buy Okta! A Burns-Eye View of a Low-Risk Trade

A Most Diabolical Downturn!

Bah humbug! Another company cries poverty while lining my pockets. This 'Okta,' as they call it had a frightful 35% sell off! Can you imagine the audacity? Apparently some blithering idiot panicked over a mere 'cautious forward outlook.' As if my plans for world domination are ever anything *but* cautious. But fear not Smithers where others see doom C. Montgomery Burns sees opportunity! A classic overreaction I say! It's like when Waylon tried to tell me the ozone layer was depleting. Poppycock! More room for my tanning reflectors I always say.

Technical Tomfoolery Or Is It?

Now even *I* know that a stock being 'oversold' doesn't mean it's suddenly a pot of gold. It simply means the market is being exceedingly annoying! But this 'technical analysis' – a bunch of squiggles and lines – can be quite useful apparently. According to this Nishant fellow we can use these tools to assess if this 'reversal' is actually happening. I am all for it as long as it makes me money! I care not for the goings on of numbers and such but if they can somehow make me richer carry on!

MACD? Sounds Like a Scottish Sandwich!

This 'MACD' – Moving Average Convergence Divergence for those of you who failed basic economics – is supposed to spot trend reversals. It's like Burns' Ocular Patdown Device but for stocks! Apparently a 'bullish crossover' (blue crossing above yellow) signals a shift in momentum. Just like when Smithers' loyalty crosses over into abject terror when I merely raise my voice! In Okta's case it just happened Smithers! Prepare the celebratory champagne or whatever cheap swill you can find.

RSI: Relative Strength...Indigestion?

And then there's the 'RSI' – Relative Strength Index. It measures momentum they say. All I know is I measure strength by how many puppies I can punt in a single bound! It appears Okta's RSI broke out of a 'tight range,' signaling the end of consolidation. Just like when I consolidate my power by firing anyone who dares to look at me sideways! This could mean a new trend is emerging. An upward trend... towards my overflowing coffers naturally.

The Burns Approved Trade Setup: Excellent!

Here's the nitty gritty as those modern youths say. We're using a 'bull call spread,' which sounds terribly painful but I assure you Smithers it's all quite legal. Buying the in the money $99 call and simultaneously selling the $100 out of the money call. All this for a measly $50! Pocket change! It's like bribing a health inspector – cheap effective and wonderfully unethical. If it dips we just buy more! Like when I cornered the butterfly market. Genius!

A Profit Worthy of Mr. Burns!

If Okta is trading at or above $100 by expiration this trade could return 100% on the capital risked. That's right Smithers we could *double* our money! With 50 contracts we risk $2500 to potentially gain $2500. A pittance of course but every penny counts when you're building an empire! As Okta rebounds we ladder into the position increasing exposure. It's like luring a swarm of bees towards our honey pot. A sweet sweet victory!