Hedy,
It does seem that there is some support at 5.03125 with TPRO. There may even be something to the allegation that MMs have orders at 5. However, they might only buy X number of shares at 5 before they drop their limit orders to 4.875, 4.75, etc.
I think if TPRO breaks 5, it will could go back as low 4.3125, which would be the floor.
I think the way to play this is to place a limit order at 5.0625. If it goes that low and your order gets filled, immediately place a stop limit order at 4 27/32. If the price continues to fall you are out with a 4% loss (+brokers fee) and have your $$ free to buy at, or near, the floor.
If it goes back to 5.5, then you're at 8.7%(-brokers fees).
I've been watching TPRO for a month now and it gaps up less than 3/16 in morning it will usually fall in value before the end of the day. Greater than 3/16, it will usually rally. So if you see a weak rally in the morning, TPRO makes a good intraday short play of about 10%.
No matter what you do with TPRO, unless it is just really flying and you are long, always play with a 1/4 point stop limit order.
Good luck with your trades. |
