[Entering Position in Napster (NAPS)]
Dear Member:
Napster (NAPS) has been rolling between about $3.55 and $4.20. Yesterday, it had a low near support and has popped up a bit today. Currently, it is trading around $3.70 so it has a potential upside move in the channel of around 50 cents while the exit level if it turned down is about 15 cents so the possible reward to risk is approximately 3:1.
I am placing an order to buy NAPS at a limit of $3.70. If filled, I will immediately place a one cancels the other order with a sell stop at $3.55 and a sell limit at $4.15. In other words, I will try to buy the stock at $3.70 or better today and if I get filled, will exit if it goes down to $3.55 or if it goes up to $4.15.
DISCLOSURE: At the time of publication, I have no position in NAPS.
Sincerely,
Bill Kraft
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