Wednesday, September 27th                                          IMNP

 

Analysis: Spotted this premarket winner early. Low floater with 2.8M shares outstanding, market cap ≈ 15M and volume 10 times the average volume. Stock was up 90% at its peak P/M on news of positive results of Phase 2 Trial. After double bottom at 1.75 (so up 46% on the day) I pulled the trigger P/M at 1.84. However, did not realize that the IB Workstation did not offer the possibility to buy P/M so I opened it in browser and used Quicktrade from IB website. I will only use that from now on as it is a lot faster.

Side note: first time trying to buy P/M from Workstation so I’m sure the option is there but I wanted to buy and look into it later.

 

Entry: Entered at 1.94 because of delayed entry due to my failure to buy from IB Workstation. Considering the price action I still decided that it was a good entry. Plan was to sell above 2 - 2.10.

 

Exit: No morning spike, not even back to its P/M highs so I cut my losses as soon as it hit my risk level at 1.72.

 

Comments: Losing trade perhaps, but not in my mind. I followed my plan even if I got executed a little higher. I thought there was upside in general, not necessarily more upside.

 

Lesson: News were not strong enough - it is a positive result from an ongoing phase 2 trial of some disease that is not even widespread. Actually, there are less than 20,000 cases per year in the US. Should have googled that before pulling the trigger.