All hail Caesar

I came into this week with one “to fade” play idea and that was $CZR (Caesars Entertainment). The thesis behind the “to fade” play trade ideas is that any stock making this list has had an “outsized” move in my opinion – too far, too fast.

It can be a stock that I actually like on a longer term basis, but in the short-term I feel it is due for a pullback.

$CZR had made a significant up move (up 63% in 2 trading days) on news that New Jersey would make a big push to get online gaming in the state:

quote from Gov. Christie on the issue: “Now is the time for our state to move forward, again leading the way for the nation, by becoming one of the first states to permit Internet gaming.”

I initiated a short position on February 11:

CZR_to_fade

I spend time each weekend reviewing the trade entries/exits from the past week and gave myself a poor grade on my performance in this trade – an issue with impatience. The stock closed the week at $10.74 so this is the punishment for running out of the trade too soon. Ugh.

From my review it appears that I also had a Stop that was way too tight and needed better adjustment given the significant move on the prior Thursday/Friday of trading. The mistakes are piling up in this trade.

I see this stated frequently and will repeat here for self-reminding: let your winners RUN.

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