ROKU had been in a longterm downtrend, but seems to have bottomed with the market a few days ago. On this day it had breaking news because they renewed a deal with YouTube to make their videos available on Roku enabled sets. The stock reacted very strongly to this news. It is so beaten down that any good news can make it pop significantly. As a side note, I'm no longer bag holding this name in my longterm account, it was that strong today!
I had been watching ROKU and trading it in the simulator trying to learn DAS when it broke a trendline and dropped sharply. The move was so big that it looked like it might consolidate for a short period and then have another leg down. Holding below VWAP was a check in my favor for a short.
I put in an offer at the top of the pullback high and it got hit. I was risking sixty cents, looking for several dollars of upside. I was able to take off some of the shares in the consolidation to remove the risk of the trade. It quickly broke and I was able to cover a further portion of the trade lower. The lowest cover I had was only a few pennies off the LOD, which is pretty decent anyways.
I had 1/3 of my position left and I kept my stop in the same place as it origianlly was. If ROKU was going to be strong on the day, then this trade was going to be over for a small win. That ended up happening and I went flat. This was my only trade on the day.
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