Good morning traders, Yesterday I decided to get back into FRAN (short) 100 shares @ $15.23 and a Buy Stop @ $15.90. My overall risk on this trade with that stop in place is only $67 dollars. Overall my P/L on FRAN this year is already $251 dollars from previous shorts made on it.
Reason For the short: In most instances, especially a lower cap/float stock, the reactions to news or earnings can be exaggerated. This stock rose from about $5 dollars all the way to almost $20 dollars, In my opinion that is a bit irrational, but because FRAN has a lower float, it wouldn’t take a lot of trading interest to push the price to these irrational levels.
I will be watching this trade today and can already see FRAN will be opening the morning down in the $14.80s dollar area so my short will be profitable. Happy trading!!!!