Daniel.B

Going long the "Pump"

Long
NYSE:FRO   Frontline Plc
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! =)
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