That swing trade has worked many times, I have done about 10 of those in the past few years and gained over $1 on an average of 25k shares (sometimes more, sometimes less). I did not have losses to cover with CUU but it is a viable strategy for someone. This company (like others) does get irrational sp moves like we just saw- the chart is full of them. This trade dried up the past six months, but is back again with the recent move.
But honestly, when so many companies are in the toilet, one needs to at least consider a different strategy. You could move a holding to another company(ies) with better prospects based on deposit, economics, management, commodity, etc. and ride a wave up with the potential for a brilliant outcome. Cutting losses is never easy. If it is taxable, you benefit from the tax loss, and if it is tax-sheltered- well, you pay for some trades and you are reset into a position(s) with a positive outlook, and put this entire sorry episode behind you. Every person will do what they are comfortable with, but I would not hold here waiting for the upside. I don't think management has demonstrated they can unlock value even if the market is good. |
