Identify The Trade
$EYEG had a notable gap up of around +30% so it caught my eye early in the premarket. This stock is a former runner and gapper that I have traded in the past, so I expect it to be a flying pig once again. It has a 20 million float, low insider ownership and a daily chart that looks ugly. It also has a very high institutional ownership, probably a lot of people who would love some liquidity so they can get out of their positions.
Choose The Strategy
This day in the markets was so slow and boring you could taste it. No stocks were moving which gave me the extra confidence to simply use the high-of-day as a resistance/entry point for a short sell trade. So using the premarket chart, that means any entry around 84 cents targeting 70-75 cents for an exit.
Execute The Trade
I didn't think $EYEG would be able to muster up a spike after the depressing premarket chart looked like it was ready to fade, however right after the open $EYEG tried to break through the 85 cents level but just couldn't get enough volume. I managed to get an entry right at this point luckily and then I held onto it as long as I could trying to get a good return for the risk at 90 cents that I setup for this trade.