Our #1 trading idea for Friday was SRPT. It sold $300 million of shares in a secondary offering via Goldman Sachs and JP Morgan. Normally, biotech secondaries are excellent long set ups. The prior week I had been long AERI following its secondary offering and it traded 30%+ higher in a few days. But this time was different. I discussed why SRPT was likely a good short trade candidate.

Why was this time different? Watch our AM Meeting below.

Below how SRPT traded Friday after the market opened…

Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, and options. He has traded professionally for 20 years. His email address is: [email protected].

Steven Spencer is currently short SRPT