Identify The Trade
$NAKD showed up on my radar in premarket because it had an over 50% gap up and I am also fairly familiar with this stock's past. Although it's a higher float now at about 20 million shares, it can still move, so I was immediately interested to see if there was a trade to be made.
Choose The Strategy
Since there were no nearby resistance levels of note, I decided against trading the front side of the move and instead waited until after the morning push to consider an entry. My plan was to short against that high of day mark in the morning and look for an all-day fade back into the gap that was formed premarket.
Execute The Trade
With the stock trading very low volume relative to the float size, I got an entry in at 6.37 during a failed attempt to push up. My risk was very wide on this trade, up to $7.00, since it was the last day of the month and a low probability trade, I didn't want to mess things up. During the morning session the stock reached $5.30 but couldn't get any further down, where I wanted it to go so I could close out the trade. In the end I held all day and simply closed the trade right before the close. A small win or scratch trade. Goodbye July!