This is a potential short trade that could deliver a nice gain if the market pulls back. I am still focused on buying opportunities, but it never hurts to be prepared for the other side.
Some of you may remember this as a stock I was looking to buy a couple months ago.
Often times, the best short ideas come from stocks on my long watchlist that fail.
HIMS tripled from October to April but began rolling over after a poor earnings report at the beginning of May.
Not only did the stock fall on above-average volume, but even a 33% discount has failed to attract buyers. When stocks pull back, they either act as tennis balls (bounce back quickly) or eggs (splat and fail to rally).
Buy tennis balls. Sell eggs.
HIMS has formed a support shelf near the $8 level. A move below that would trigger a lot of stops, making it an ideal place to sell the stock short.
Some of you may remember this as a stock I was looking to buy a couple months ago.
Often times, the best short ideas come from stocks on my long watchlist that fail.
HIMS tripled from October to April but began rolling over after a poor earnings report at the beginning of May.
Not only did the stock fall on above-average volume, but even a 33% discount has failed to attract buyers. When stocks pull back, they either act as tennis balls (bounce back quickly) or eggs (splat and fail to rally).
Buy tennis balls. Sell eggs.
HIMS has formed a support shelf near the $8 level. A move below that would trigger a lot of stops, making it an ideal place to sell the stock short.