Caesars (CZK): The Art of Trading Day 1 of an IPO

When trading the first day of an IPO, it is impossible to KNOW what the stock is going to do. In trading, it is all about finding levels to trade against to define risk, and that can be done on any timeframe. On Day 1, all you have to work with is that day’s price levels, so that is what you use to frame your trade.

The opening print after the halt was $13.00-14.00. Sellers and supply came in and took it lower in first 30-60 minutes. When supply meets demand, and chart turns up off lows, the aggressive trader will buy vs. that low around $11.50ish.

When it triggers above the opening range, that shows real demand for that issue, so it turns into a buy above $13.00-$14.00. Above that level it quickly went to $15.00-$15.20 for cash flow.

It then retested the prior pivot, held, and then turned higher, providing a new trigger buy above $15.00-15.20 and that next move was exciting and took it as high as $17.87.

There were three triggers for cash flow. Some stocks take weeks or months to go from $11 to $17.90. A hot new issue can do it in hours.

If you simply learn how to maneuver an IPO on its first day based on intraday price levels, you can potentially have a lucrative trading on your hands.

There will be many more like this year, obviously including Facebook (FB).

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About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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