I am suggesting you “scale in” to this position. This is one of those stocks that can move very quickly, so the goal is to wind up with the best cost basis as it finds a solid level of support. Scaling into a position involves buying a smaller percentage to start and easing into the position as the stock moves up or down. If it moves lower after you buy into the first part of the trade, you’ll wind up with a lower cost basis. If you buy more at a higher level then you are adding to the position as the stock pivots higher. Either way, this puts you in a win-win situation.
See video link below.
I’ve also attached a PDF file that explains more of the details behind this trade. Please be sure to review all of the material, including my risk management notes, before entering any trades to your account. As I mentioned in the alert, this is a stock that can move, so managing risk on this trade is a must.
