Yesterday MCP flashed to the top of the Price Spike list again (first two arrows) on the SMB Radar. Knowing what happened last time this occurred, it was something that had to be pulled up immediately. Having been prepared since the last alert we see on Friday, support and resistance levels were already noted – we simply had to watch and be ready.

The trade this time around was actually even easier as it moved just a bit slower than the last volatility spike.

The trade I made is shown above. Buy MCP on the bid as it tightens up against 62.00 (it was 80 x 90c, so bid low 80s with stop below 50c). When 62.00 broke, bid around it to add to the position (not a stock you want to pay the offer in)

The play was an intraday flag, with a measured move target of 63.50. It ripped right through the target but slowed near 64.00, take some off here but hold 1/2 or 1/4 when you see 85c aggressively hold the bid. Although it can get messy if 85c drops (it did), the potential reward is still high as resistance was still points away. When the bid drops don’t panic, offer in the 70s and get flat.

Chop.