Strategy Description: A couple of key things here. This involves shorting on the first day so you need to be very careful about when and how much size you use to short. It is absolutely fine to get quite big size on the short, but only after it is below vwap post 10:30am.
Ideal Situations:
(1) Big Gap and trashy company.
(2) News Sub-Par.
(3) History of gap failures on the daily.
(4) Bigger float than other float rotation plays.
Execution:
(1) If feel confident about the play start into any morning parabolic but never get too much size here (say 1/4). I didn't start into this one because it was doing enormous volume and that scared me.
(2) There is a chance that it can retest somewhere near the high. Especially pre 11am; so should be prepared for that. Should load up very large if that occurs naturally.
(3) Once clearly below vwap should be trying to get short size on pops with a stop basically around vwapish with an aim to cover half to pay self on the way down; and hold the rest until end of day, or when it reaches some really far out target.
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