A trader walks through how he made $500K+ on AMC using a news catalyst strategy. He scaled into the position as the stock fell from $73 to $53, capturing $38,000 and $410,000 on separate trades by riding the momentum reversal from red to green.
So this was an example of a news catalyst helping that first red day setup even more. So we got that news catalyst on AMC. We had that day of extension. We gapped up, boom, washout right here, red to green, size up. So you could take a starter when the news comes out, size up as it goes red on the day. And all of a sudden this move here from $73 comes all the way down to $53. And then all you see is push up at the open and go from $62 down to $41, bounce back up and down to $37. I had Locked in $38,000 on one trade, locked in $410,000 on the other trade, locked in $20,000, and I was sitting at an unrealized $235,000.
