$OPTT Short Squeeze

What a week!  Two massive short squeezes back to back first on $BOSC yesterday (see my post here) then again today on $OPTT.  Of the two $OPTT was a much bigger winner for me, an it was in a large part because this was a former runner that I am very familiar with.  I was more aggressive from the start with my position sizing, and I’m guessing other traders were as well, which is why we saw such a big move.

The Setup

The setup on $OPTT was pretty simple.  I first found it on my HOD Momentum Scanner in Trade-Ideas.  That was at 9:32am and what I saw was a familiar stock & former runner, hitting my “Massive Volume & Low Float Scanner”.  Whenever I see a former runner hitting that scan I jump in at the first pullback or the first half dollar or whole dollar.  In this case, I was long at 2.90 with a partial fill of 2800 shares of my 7500 share order, in anticpation of the 3.00 break.  I sold 2200 shares in the 3.90s, and held the remaining 600 through the halt at 4.25.


The Circuit Breaker Halt

Shares of $OPTT were halted on a circuit breaker at 9:34:54.  A circuit breaker halt is a 5min volatility halt (read more here).  This gives traders a chance to read about the news, and catch their bearings.  In my case, I quickly searched Market Watch to find the catalyst for this massive squeeze and saw that they had a press release about entering into a commercial agreement see here: Ocean Power Technologies Enters Into First Commercial PB3 Agreement with Mitsui Engineering and Shipbuilding.  Often times when a stock is halted while it’s going up, it reopens higher.  In this case we opened and squeezed to a high of just under $5.00.  I sold my shares on the dip back down, and then added back at 4.45 for the break of 4.50, and a test of 5.00.  I immediately sold in the 4.90s and locked another big winner.


Video Recap

Final Tally

In total I am walking away from the market today with $4390 in profits on $OPTT.  This was a huge winner and gives me a big jump start on the month of June!  With over $5500 in profits this week, I can’t wait to see what kind of momentum we see Thursday and Friday!  I’ve only been trading 2hrs/day, and I’m only trading Momentum and Gap and Go setups.  This is exactly what we teach in the trading courses.  If you want to learn more about our strategies, check out our classes here: