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Home › Forums › Closed Trades › Short Squeeze in FEYE
Setup: Short Squeeze and Breakout
Price: 30 min bar close above 17.35
Description:
Potential long term double bottom coming in. Other internet security stocks look pretty decent here, and I’m expecting the stock to run into its earnings event.
Look for a close above 17.35 on a 30 min chart. If we see that it should be a quick squeeze to 20, and then we’ll see if the stock can get any real momentum going.
Strategy: Aug 17/22 call spread @1.33. The spread is currently going for around 1.00 but I am willing to pay up more to confirm that the breakout is happening.
If the stock closes back under 15, then stop out of the trade for a loss.
Sell half into 19.70.
FEYE is getting close to triggering, so I’m going to update my trade setup with new strikes.
Because 2 weeks have gone by since this trade alert, we need to look at options with a little more time involved.
Instead of Aug options, we’ll go with Sep options.
Full Time Profits Order Ticket | ||||
Type | Asset | Duration | Strike | C/P |
---|---|---|---|---|
BTO | FEYE | 16 Sep 16 | 17 | Call |
STO | FEYE | 16 Sep 16 | 20 | Call |
Total Debit: | 1.1 |
Stop out on a close under 15
Hold thru earnings
Sell half at 1.50
The stock had a big gap down on earnings, so for now I’m considering this trade blown out. It still has a high short interest and it does look that it is ready to fill its gap so I’ll be patient and give it a week or two to see if the trade can be salvaged.
Expired.
-100% on capital.