SDC Trade on Aug 10, 2021 09:21 from blackie_trades: Tradervue User Stock Trades.

In the after-hours of the 9th of August, the stock got hammered after reporting negative earnings. The stock dropped all the way to $5.50 and recovered a little to $5.80. In the pre-market hours of the 10th of August the price gapped down to around $5.60 and from 7.00 AM it started to consolidated in a range between $5.60 and $5.70.

I expected that the stock would drop more during regular trading hours and want to the opportunity in this trade. I went short a 100 shares at $5.51 with a risk of $0.15 cents a share. On the open the price dropped super clean to about $5.00, where it seems a lot of dip buyers were. I covered my position at $5.075. the RR in this trade for me was $0.425/0.15$ = 2.83, which is decent for a scalp. Technically it has been higher, as the price did not even got close to my stop-loss.

I could have improved my entry price by going short in the initial consolidation period, but I acted a bit more conservative by waiting for downard confirmation.