Not really sure why anyone would buy this stock but whatever. It's overbought, double topped, and threw a reversal pattern.
Low float stock with no liquidity, and options are thinly traded. Managed to snag some June 30 puts at $.30 for a small play.
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Just realized FC rallied last May as well, then tanked with earnings. Futures are tanking this afternoon, if the market gaps down and this thing still goes up, I'm done playing with it.
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For those of you who have never played around with thinly traded stocks, this is how it goes....
The funds pump this crap and it all looks great on paper until one of them decides to sell. Then it all collapses because there's no liquidity at all. Down 2.5% on only 3500 shares, imagine what happens if one of the funds decides to cash all of their shares, lol.
The trade blocks are less than 1k shares, not sure how they think they're gonna be able to get out of this stock.
Trade closed manually
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Decided to close all my positions this morning including this one. Best guess is that this is going to make the same pattern as last June, but who knows.
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Bought 30 puts for .15, can't imagine anyone would want to hold this at ATH before earnings
algos buy any kind of shxx... that is the only explanation i could find to date.
hungry_hippo
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@LoLBeach, yes, the algos buy everything and stocks with no sellers will melt up like FC, WK, CMG, etc. As soon as people panic they'll tank. Fundamentals suck for FC, same revenue as 2015, lower margins, yet ATH. Can't trade on fundamentals though and I think I got bear trapped this morning. Only $300 worth of puts, so I'm not worried at all. I'm up big on QADA puts.
CodedFlow
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@hungry_hippo, I used your FC idea. the rest of ideas are on my page.
hungry_hippo
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@LoLBeach, thing is, this stock is very thinly traded. You can tank the stock by selling 1k shares.
Puts are so thinly traded, I had to exercise them last year, and I moved the stock by $.50 on 3k shares.