Here is a trade we did in $GDOT last week. This is a type of earnings play that we do each day during earnings season. Earnings season is my favorite time to trade, as we see a ton of these setups.
$GDOT had a big gap down on PR/earnings. Usually a large gap of any type up or down gets my attention, as it means it’s “in play.”
After the initial pop from the open, we shorted at $9.90 on the crack, covering 1/2 at $9.47 and the other 1/2 $9.2. We then reshort again late day at $9.64, covering 1/2 at $9.37 and $9.24
I give myself a b+ on the trade. I managed the trade pretty well, but both times I could have shorted at a higher price, as the setup had a very high probability of breaking down.
Learn more about shorting by emailing me at kunal@bullsonwallstreet.com
