Follow-up on last week’s trade idea
Last week we recommended to exploit the breakouts that many stocks were poised to make. A breakout is a situation where a stock is about to break highs but it’s resilient to do so as it is held back by fear. A increase in bullish volume can unlock this situation by discouraging sellers. We adopted a strategy based on the bullish potential of OpenTable, and a beta-one protection via a index short trade.
The strategy worked out and returned a positive profit of around 6%.
As the breakout has now taken place, we recommend to close position and take profit.
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