The squeeze in oil-related highly leveraged names continued for a 3rd day. We took this opportunity to short a few of these. One of them was $CRC (California Resources stock). It skyrocketed from 28c last week to an intraday high of $1.82 today. This unbelievable move certainly caught some people by surprise and resulted in a nasty short squeeze.
When we thought the upwards squeeze was reaching exhaustion, we initiated a short in CRC. One key that we looked for was big volume block printing. We noticed some 800k blocks going through around the $1.75 level and decided it was time for it to sell-off and reverse back down. Traded it two times and covered into weakness. Overall, they were pretty simple trades but we took caution by shorting smaller dollar-sized positions.
Net profit: $3,992.