In yesterday’s post, my INSY position had exceeded my profit target by a goodly amount, and I was trying to decide if I should sell according to the rules of the system I have in place. The stock is heavily shorted and looked to go higher on a “short squeeze”, so I thought I might be leaving money on the table if I sold.
So this morning I got up, and the bid/ask prices were well above my target price. So I put in a sell with a hard stop slightly over my target, at $45.98. The price briefly dipped below that and my shares were sold at market, or $45.78. Deducting commission I made over 15% on my trade, in 16 trading days. And it outperformed the S&P 500 by 17% during that time. A nice little swing trade.
I’ll revisit this trade in a month or so to see if the short squeeze played out, and if I should have taken a different approach to my stops.