I got my opportunity, but I really chickened out and only took a small position. The stock was down slightly in the morning after a negative seeking alpha article. The article points out the extreme over valuation as I have on this blog. I was skeptical the article would move the stock though, it is pretty obvious to all how much of a premium to book value SVVC is trading at. And shares were available to short for the first time in about a week. I was skeptical it was a trap. So I took a position at $44, that would allow for a squeeze to $50.
I shorted on the morning of April 5 ($44) and covered on the gap down on April 9 ($33's). The gap down was dramatic and caused by general market weakness. Gutted at the small position. I should have had triple the position and a stop at $46. More aggression is needed on great setups.
Look to re-short on extreme price spikes prior to the capital raise pricing & IPO.
The FB IPO is going to happen in May, and related stocks are starting to squeeze up. Looking forward to the post FB IPO market. Have a large watch list of potential shorts - starting with SVVC.
Open Trades Short
HUSA (April $7.5 puts), VRML, GPRC, VRNG, TZYM, OPHC, HEAT
Open Trades Long
ALXA, EXEL, CHTP, UNIS, MSHL, CLDX, HZNP
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