Today $NGL (NGL Energy Partners) announced a major dividend cut and a strategic investment with Oaktree Capital. Under the agreement, Oaktree acquired $200M of 10.75% Class A convertible preferred units. Both these actions boost $NGL liquidity which is a big positive in today's grim energy sector. The news caused a classic short squeeze of parabolic measures and moved the stock up to a ridiculous +65% at its intraday peak. In our opinion, news like this should only contribute +15-25% to the upside.
We shorted the parabolic move all the way up and covered into weakness on the way back down. We were lazy to ride the short position further as we were content with the profits. This trade was a classic short the parabolic move. All trades are called out live in the MookTrader stock chat room so all our members made out like bandits as well.
Net Profit: $8,842 in 7 minutes!