A nice day trade in Take Two interactive. why TTWO? premarket it tanked by 35% so it popped on my radar, I did a quick TA and saw support @ $7.14
On the 9 month daily chart you can see a support back from July where it strongly bounced back from this level.
So I watch this closely as it goes down all the way to $7 and bounces back (what is with these round numbers?)
I bot 100 at $7.24 on margin money making sure that it was really bouncing. and saw it go up very nicely to $7.52.
Now, I had some meetings to go to so I set a trail stop on this by 2 cents.
A few hours later, I am back at my desk and the stock is sold for $7.79
I loved the way I did this trade because:
- I did not just buy on the dip, I actually did some TA on the trade so I was prepared
- I did not immediately sell it when it bounced back so that I would have made a measly 2-3 dollars and my broker would have made $10 in commissions
- And, I did not sell @ market but I placed a Trailing stop by 2 cents which basically made me an extra 20 dollars as i would have otherwise sold @ 7.52
- and maybe, all this happened because I did not meddle with the trade but was out in a meeting…. thinking about this one hard.
So here it is:
I made a good $45 on this one and felt nice for a day trade.
A few options that came to my mind was on selling covered calls on this in the front month to collect premiums, but I had bought this on margin so better to just close the trade and pocket the 45 dollars.
Ok, I am still putting this one on my radar and if there is any overall weakness in the equities and this one sells off, I will be a buyer into the weakness.
