Sunday, June 12, 2011

OpenTable (OPEN) Update

When I first blogged about OpenTable back on May 25th I was kicking myself for passing on what turned out to be a pretty nice little trade. 

So what have I learned since then? 

Apparently nothing. 

OpenTable reversed to a short signal Friday and I passed on that trade too. I actually like the trade, and I had my finger on the trigger just a few minutes before the close. But as I mentioned in my Cummins post on Friday, I'm already short a bunch of stocks, and a lot of big names are trading just pennies from their stops (even Apple), so I think I'm going to wait and see what happens in the coming week.

But just for the record, here's the setup on OpenTable:   

1. LONG the week of 2.8.10 at $31.10. The initial stop was $23.68, so the risk (R) on the trade was $7.42. Stopped out and reversed to short the week of 6.6.11 (Friday) at $79.40. The percentage gain on the trade was 155.3%, and the reward-to-risk ratio works out to $48.30/$7.42 = 6.51.

2. SHORT the week of 6.6.11 at $79.40. I would use $108.91 for a first stop, and that would give me an R of $29.51.

A month from now will I be kicking myself for passing on this trade too?

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