Looking for some quick bucks tomorrow morning? Check out Lannett Co ($LCI). (May 09, 2018)
LCI
I want to look at Lannett ( NYSE: LCI ). Here is an opportunity to make what I think is going to be some pretty, I won’t say easy money, I don’t think there is any such thing in the market unless you are selling the right option, but some pretty quick money first thing in the morning. We get this big sell-off yesterday and I think some folks buy this stock right at the open looking for a big move up. That didn’t really work out. Well, it got a little bit of a gap up right at the open but then you get this big, massive dump for another 5ish, 6 percent down. But then the stock winds up closing flat, 13.85; that is where it closed yesterday, closes here today.
So your trade is this: Set an alert. At the top of the range here is 14.08. So if the stock rallies up above 14.08 you can buy this thing, look for maybe 3 or 4 percent. I think if it rallies above 14.08 then it should go up to at least 14.50, perhaps a little bit more. You can get a head start on this stock; hence make more money if you buy earlier than 14.08.
If the stock opens up tomorrow morning somewhere right in between where it is now, it opened at 13.95 and then it closed at 13.85 so in this little 10 cent range; if the stock opens somewhere around there you can be buying early and then just add to this position. So that is the second way and I will show you a third way too.
The first way is, you wait for the stock to clear today’s intraday high. Boom! That is when you buy, you look for 14.50 or so.
The next way is if the stock is trading somewhere in between today’s open and close you buy some stock and then you add to that position if the stock rallies above today’s intraday high.
The third way and ideally this would be actually the best way, is if the stock gaps DOWN tomorrow, if it gaps down tomorrow and finds some support, you have to look at this on an intraday chart, you can look at a 5-minute chart, you just kind of need to see this type of thing. You need to see some kind of reversal and a move to the upside. But if you see this type of pattern tomorrow after this kind of move, that is when you would buy.
So if the stock gives you an opportunity get in, say, close to 13.50 all the better because you then have an ability to set a stop a little bit below today’s intraday low. So are you getting this? What I am doing is I am showing you three different scenarios as far as how to make a trade, a long trade based on an oversold snapback rally. So this, to me, looks like the first day here and we are probably going to get a little bit more upside tomorrow. But at the very least I believe that today’s intraday low of 13.15 will, in fact, hold.
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