Hey Traders, Barrie Einarson here with today’s edition of “What Makes This Trade Great,” and boy, do I have a wild one for you – TWOU. To Subscribe: https://go.trade-ideas.com/SHQ
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A Bit of a Strange One

Let’s dive right in. TWOU had a bit of a rollercoaster yesterday. They executed a 1-for-5 reverse split, and things went absolutely crazy from there. The stock went from $1.26 all the way up to $3.74 – a massive move!

Morning Expectations and Reality

When I woke up this morning, I was bracing myself to see TWOU give up all those gains. But guess what? It surprised me and many others. The stock actually climbed higher, hitting $3.79, taking out its previous high of $3.74.

The Shorting Opportunity

Here’s where it gets interesting. At $3.75, I advised shorting the stock. The rationale was simple: after such a huge run-up, a pullback seemed inevitable. And indeed, it happened. TWOU dropped to $3.14, which was a tremendous opportunity for those who got in on the short.

But wait, it didn’t stop there. The stock pulled back up, giving another shorting chance around $3.68 before diving down to $2.96. Talk about a trade that keeps on giving!

Now, I want to be clear – I’m not suggesting you hold this overnight. The market can be unpredictable, and overnight positions carry their own risks. However, if you’re still shorting TWOU, it might be wise to hold onto some of those positions. I have my doubts about its sustained action, but as always, be vigilant and ready to act.

TWOU presented some fantastic opportunities today, showing the value of staying alert and ready to capitalize on market movements. I’m heading back to the trading room now, but I’ll be back tomorrow with more insights. Check out my homepage for more information.

Until then, happy trading!