Strategy Description: Secondary prices can create really really solid levels of support, where you can risk a couple of cents, and if the secondary proves to be successful get a really really decent move. Note that this strategy is slightly different to looking back at a secondary a few days later and determining that it's been successful and looking to get in.
Around the days of the secondary the secondary price will be defended heavily throughout trading hours.
Looking for strong price action prior to the secondary, or perhaps an enormous discount that allows the pricing to seem good.
Note that the level can be breached in the premarket, however you definitely don't want breaches in the market hours.
Look to get in premarket on a wash through the level, stoploss say 25-30c below. Cover risk into pops and then look for it to hold the level to the cent. From there get in quite large risking 5-10c and rinse and repeat. There is a decent chance of rinsing and repeating a couple of times, so you want to be selling bit more than half into pops.
Good liquidity will help quite a bit for limiting risk.
One thing to consider is that you don't really want to be stopping out above the secondary price, so it makes it a little difficult to add. You don't want to ruin your average!
Bigger Picture: Overall market will help out, however there is likely to be independent order flow.
Intraday Fundamentals: ATR=$1.50, ADV=2m, Rvol=3.67x, Market Cap=$2.2b, FS=25%. CLDX reported strong earnings about a week ago, which bolsters the bullish idea. The secondary price is $24.
Technical Analysis: $24 is a big level from a swing high in Jan. Then it represented the rough gap up from earnings. Then combined with the secondary price, probably makes it a little better than usual secondary prices.
Trade Management: I literally couldn't have played this better on the open so I included the chart with executions (blue is buy, red is sell). Load up $24, sell pop to $24.30-.50, reload $24.03 (with patience!!!), sell pop. Rinse and repeat.
I probably could have done a better job of capturing the pop to $25 later in the day with size, but I managed to get a few shares on a dip, so was good.
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