Daniel.B
Long

Going long the "Pump"

NYSE:FRO   FRONTLINE LTD
206 views
2
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! =)

Comments

Damn, this stock was in ugly consolidation for quite a long time, consolidating since the start of February 2015. Is this like a breakout trade after the consolidation?
+1 Reply
Daniel.B moneymaking
Yea, this is a good example of an "aggressive" breakout trade. I can't really wait for a retest of broken resistance because odds are we'll never get a re-test and it'll just head right up to the $5.00 area, before selling off again. The opportunity was just to good hehe =D
Reply
moneymaking Daniel.B
You really believe that it will go back up to $5.00 level. That would be some hefty profit for you my friend, if it does get up there. All the BEST :)
Reply
Daniel.B moneymaking
Yea I believe it has a chance to get up there, either way I'll take half of the trade off the books around the $4.40 area. Thanks bro =)
Reply
IvanLabrie moneymaking
That consolidation was probably insiders buying stock quietly, since they knew something would inflate the value later on.
+1 Reply
Daniel.B IvanLabrie
Yup very well could be! If that's the case then I'm happy hehe =)
Reply
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