NQ got a buyback announcement and the stock rallied hard. The stock is coming from an oversold position but it is still a short IMO as the rally took it to the top of this recent trend line, which will be resistance. In addition, announcing 80 mill in a buyback will do little as it does not require NQ to buy the shares. I don't feel this news warrants a 35% move as the news prior was pretty ominous.
The past history of this company demonstrates that with past buy back programs, the company only bought a small portion of the shares and issued many more shares in multiples the amounts bought back. The company has not retired any stock repurchased.
I'm taking my initial tranche here.
I bought UCO today, as a M/R trade. I feel this has a well-defined risk limit. My prior energy play reversion trades, ERX have worked And this could get going with a small bounce in oil.
Entry 11.74
Stop: 10.80
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