06-21-2016: $CSAL Successful Secondary

Big thing about the bigger picture on CSAL is the magnitude of the recent uptrend. Barely any red day, but by no means does it look over-extended just quite "grindy". Why wouldn't you want to pick this up at a discount to current traded price?

Then the actual pricing of the secondary. $26.01 compared to prior days close $28.15ish. Decent discount.

Next consider the premarket dip to the pricing was quickly bought up. It never stayed down there. Opening and holding significantly above the pricing is enough to suggest strength - if it wasn't strong it would be trading at the offering price. Kind of like how on a low float with a catalyst when it's not going down it's soaking up shorts, and gearing up for higher.

Once it begins trending it is a trade2hold until a reason2sell.

Note: ATR only 65c but it moved $2 for the day. Even more if you count premarket.

Execution: 

(1) The gap up makes it a little more hard to buy on the open, because it isn't unreasonable to expect it to test the offering price. If long biased already before market opens you want to be looking to pick it up around premarket support, with a defined stop-loss. Once it tests the premarket support can get long on dips against the low.

(2) If missed the first long opportunity there is an opportunity to get long when it holds vwap, and consolidates near the high of the opening range. The really really important thing here is that time needs to pass to prove that it is holding there. Otherwise it is perfectly reasonable to take the short scalp against the opening high.