Going long the "Pump"

22 ก.ค. 2015

Well I don't really like to trade low priced stocks due to the ease of manipulation in them (Even if its NYSE listed). So this is a trade based simply on what "penny/OTC" traders know as the quote on quote "pump" . Good volume supports the breakout, so I entered long through options.

The position:

• Bought +10 AUG 15 3.5 Calls
  

The trade:

• Exiting at a loss if we get a daily candle close below yesterday's gap.
  

• Exiting in profit if price nears the 4.40 / 5.00 area.
  

Note: I will be considering a short position at the 4.40 / 5.00 area, due to the reality that this is most likely a pump & dump just like every other time it was pumped and then dumped!

Simple, and straight to the point. =)

Happy trading folks, cheers! =)