hungry_hippo
Short

PVTL Gap Up and Short Squeeze

NYSE:PVTL   PIVOTAL SOFTWARE INC
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PVTL is up AH, looks like they're gonna squeeze out the 7M shares that are shorted. Wait for $21 and/or about 10M shares traded before entering a short. Let them squeeze all the nervous shorts out first.

Stock is trading at 6x forward revenue (not earnings ), and guidance is for a loss next year. Revenue increase was only 3% Q/Q. Any idiot can increase revenues by selling things (or services) for a loss. The valuation on "cloud" companies remind me of the dot com bubble, I dumped my 401k into cash this summer. The market could easily get cut in half and still be over valued, aside from dividend companies.

If this wasn't a "cloud" company, it would've tanked to $5 a long time ago.
Trade active: Decided to take a small Jan put position here, it only made it to $19.5 AH yesterday. Will load the boat if it makes it to $21 this week.
Comment: So far it has repeated the AH action from last night. I bet it closes the gap tomorrow.

Added some Dec 19 puts.
Comment: Projected revenues for next quarter is 1 - 2% higher than this quarter. Analysts still pumping this as a growth company. Guess they're bad at math.

Also, no short squeeze at all, looks like everyone had high entry points that they don't care about a little bump in the road. All the pumpers today will wind up selling later this week. Support at $17.
Comment: Not certain about exit strategy yet, but the first target is $17, second target is $16.2, last target is $15.4
Comment: First target reached, flipped the Dec puts. Holding Jan puts target $16.25. Playing with profits now. I think we bounce back up to $17.8 tomorrow, then tank again.

Dropped a buck with less than daily volume, plenty of room to go down with all the idiots who bought for an earnings spike.
Trade closed manually: Yay, take the profit and run. Hard to tell where this low float stock is going next, though I would assume down....
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