Buying DDOG call contracts.

Datadog Inc. (DDOG) is a tech company that offers a platform for IT managers to monitor and analyze networks and company data. Customers range from financial services firms to logistics, media and other industries.

The stock has been one of the more popular tech plays over e past year, and recently sold off sharply as growth names fell out of favor.

Shares have now pulled back to the 200-day average which may serve as a support level and trigger a rebound. This as tech stocks are catching a bid in early trading.

Shares of DDOG are expensive, but the company IS profitable which puts the name a bit ahead of many other growth stocks that have been sold recently.

Buying call contracts at this point gives us exposure to a quick rebound, while also giving us a clear line of support below. If this support level is breached, we can exit the position for a reasonable loss and move on to other opportunities as they evolve.