Here is a trade we did on $NAV on June 11th. I like this type of setup. It’s essentially a breakdown pullback play. Essentially, it occurs when a stock is in a huge downtrend and then out of nowhere has a big spike. Usually those stocks tend to fail right back to their prior trends.
So essentially this stock on the short day gaps up. It then proceeds to fill the gap. When that starts happening, we look for a low-risk spot to add a short .
Covered 1/2 at $29.26
Covered second 1/2 at $28.27
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