What Makes This Trade Great: AYTU – The Choppy Earnings Play That Still Delivered
What Makes This Trade Great: AYTU – The Choppy Earnings Play That Still Delivered
May 15, 2025
Hey traders,
Barrie Einarson here from Trade Ideas with today’s edition of What Makes This Trade Great — and let me tell you, it was slim pickings out there today. But if you’ve been watching AYTU like I have, it finally offered us a trade — even if it came with some turbulence. To Subscribe: https://go.trade-ideas.com/SHQ
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🎯 The Setup – The Long Watch on AYTU
We stared at AYTU for what felt like forever. This was an earnings play, and like most cheap names with a catalyst, we were watching for that critical break over $2.00. That’s where it got interesting — and also a bit risky.
⚠️ First Breakout – The Whiplash Trap
Around 10:50 AM, AYTU popped over $2 and spiked to $2.17… then immediately reversed in a flash move to $1.65.
This is why I always warn about cheap, thin names: they can whipsaw you out in seconds. If you had an auto stop in place, chances are you were stopped out immediately, even though the setup was still valid later on. Brutal.
📈 Second Run – Redemption for the Patient
AYTU eventually regained its footing, broke back over $2, and this time climbed steadily to $2.50.
Was it clean? Not even close.
Was it worth trading? Absolutely — if you managed risk and stayed nimble. Sometimes the second entry is the real moneymaker.
💡 Lessons from the Tape
- Tight stops can backfire in low-float, low-priced stocks — especially during earnings.
- These plays demand real-time reaction and a strong handle on price action.
- Patience and discipline still win, even in a sloppy tape.
It wasn’t the prettiest chart of the day, but it gave us a shot — and in this game, that’s all we need.
Catch you all tomorrow with the next one.
—
Barrie Einarson
Trade Ideas
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