A Rare Opportunity on a Uplisting
Hey guys, it’s been a while.
I came across a pretty unique setup I wanted to share.
On August 19th, $VELO uplisted from the OTC market to Nasdaq. It opened at $3.50 after closing the prior day at $5.90 on the OTC market.
Right now, it’s trading around $3.30 which creates a $2.60 spread versus that last OTC market close. If you’re buying near $3.30 with a stop under $3.00, you’re risking about 30 cents for a potential move back toward $5.90. That’s $2.60 of upside. Solid risk/reward. And, I put the likelihood of this playing out at about 20-30% just from some prior experience trading uplistings and all of the historical examples over the years.
The Company has granted the representative of the underwriters a 30-day option to purchase up to an additional 875,000 shares of its common stock at the public offering price of $3.00... which is also why 3.00 is likely the correct stop
The cool thing about uplistings is they suddenly open the door to traders, funds, and institutions who can’t touch OTC names. It’s also a credibility boost since the company gets to say, “We’re not in the gutter anymore.”
Press usually lags on these too. Company websites rarely flag it right away, so the wider crowd only catches on after the stock has already run. That’s why you’ll often hear traders say, “Damn, I should just buy every uplisting"... usually a few hundred percent higher ha!
Anyway, this looks like one of those rare asymmetric opps with where the stock is now compared to where it just was.
We’ve been chatting about it in the free Overnight Momentum room. Feel free to join here and share this with trading friends.
(Not financial advice. Just my opinion. Do your own DD. I am long from 3.49 currently)
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