1

PLAY
HOTH – OPENING DRIVE

CATALYST
08:45:00AM
HOTH
HOTH THERAPEUTICS ANNOUNCES FDA ACCEPTANCE OF IND APPLICATION FOR HT-001 FOR THE TREATMENT OF CANCER DISORDERS ASSOCIATED WITH EPIDERMAL GROWTH FACTOR RECEPTOR (EGFR) INHIBITOR THERAPY

TRADE IDEA
Price could touch 7.55, 9.19, 11.60, and possibly higher on the opening drive

SETUP QUALITY AND BIG PICTURE
A

Low Float 1.2M
Extreme Volume in Premarket
Fresh News
A+ Catalyst
Ugly history, but clean Daily Targets

I hate this stock; it has burned me several times. The daily chart is nasty (huge wicks on gap up days; this thing never seems to hold up) but this news headline is "A" quality.

The overall market may have found some long term support yesterday (QQQ support at 260 is getting a positive reaction) and a lot of names are trading higher

No major economic news today

PLAN
Get long on the 1st possible pullback in premarket (I was late to the party), with full size, and let Jesus take the wheel on the open. This is risk-on trade.

Price targets are 7.55, 9.19, and 11.60

Sell 1/3rd of position at each target, and leave at least 20% runner just in case this wants to go limit up all morning

Stop is a break of $6

REASONS TO SELL
Targets are hit
Price is going limit up and I want to lock in some profit
Stopped out

EXECUTIONS AND PRICE ACTION
@9am entered position on pullback from premarket highs, bidding and offering for some shares because this thing could blow off at any moment and I did not want to miss it.
@9:02 trade started working quickly and I got antsy and took some profit, immediately regretting this I added back in to take profit at 1st target, but my avg price was a little worse.
@9:21 took some additional profit since I was substantially in the money. I also wanted to provide a little cushion for the open just in case it cracked lower (this symbol and I have a sordid past and I did not fully trust it)
@9:25 added back some size because price was moving so strongly which is abnormal for this symbol, I figured it was now or never, and if there was a move on the opening print then I wanted to be involved. Plus I had the cushion.
@open immediately took ½ profit as price went limit up, no reason to lose money on this. I would have held more but it went limit up so quickly that I did not want to give back profit.
@9:56 after halting 3 times, it appeared to me like this might be done, I did not get the best fill on my runner, but it was way in the money either way, so no biggie.

KEY TAKEAWAYS
• Need to work on not scaling out of position so quickly when there is an A+ setup like this
• Did not trust the stock 100% since it has burned me before, taking some profit was not the worst thing to do, but I could have put more risk on
• Work on sizing up in these types of plays, this was a fun trade, and setups like this can make a month if theyre sized properly
• These are the fun ones; this is why we trade