Hubert Senters here.
Let’s take a look at BIIB, Biogen. Now, when you’re doing stuff on earnings what you will usually get is you will get some of these bigger gaps. I recommend that you don’t initially trade them until the gap has taken place.
In other words, if this was the earnings today and then it gapped up the very next day or earnings release previous or past this gap is what you actually want to take advantage of. You want to take advantage of it before because it’s 50/50. So what I’d like to do is go above this will be a decent long and below this would be a decent short.
Now, there’s one little catch here. There’s always catches and trading. You have to have your rules set up before you place the trade. Do you want to do a trade below $340.66? Because there were a couple of trades there. I’m going to zoom in here that happened below that.
And if you did your short under water or are you waiting for a close blow. So initially until you get used to this, I would say that you’re looking for a close above this initial high at $368.09 and I’m just ball parking on that. Let me get a little bit more accurate $367.71 or a short with a close below $340.
Then you can actually if you’re going to short below $340 you can target half a gut fill on a full gut fill if you’re going to the high side you just gauge how big the distance is from here to here. And then you would go half of that distance would be your first target. And then the full distance will be your full target.
So let me show you here. So basically that’s the entire width of that box. So what you would do is if you went to the high side your long would be initially along with a target the long would be $367 or above long target one, $388, target two would be $407.
Good luck. Hope it helps. And I’ll see you on the next video.
Hubert.
