The market has seem some almost unprecedentedly strong bullish moves during this 2016 Santa Rally that we have been in, since early November.  As it stands, I’m doing my best to find some stocks on sale that haven’t made cataclysmically strong bullish moves and still offer some value and a chance to buy low, sell high. 

There are a few out there, like GPRO, FIT and it’s not like I’m bottom fishing, but I just want to make sure if I buy, the risk:reward needs to be there!

And that’s what I want to talk about with MNKD here. What’s “worse case scenario on this stock?” Well, $0.00. This is a pretty cheap stock that still takes on high volume and is quite volatile. There are some good chart patterns forming on this stock too, as well as some high volume spikes!

Let’s talk risk on this trade. There are two set ups; but risk mitigation will be much more important. I’m going to use the term R for risk management. If you have never heard of this style of risk before, check out this article on it. 

Here’s the chart and two set ups. 

With an R of $500 one could either 

A) Enter at .68 on a limit buy with a stop a .35     Shares purchased would be 1,515 OR

B) Enter at .68 on a limit buy with no stop. Shares purchased would be 735

 

MNKD2016-12-19_at_3.27.59_PM.jpg

 

Worst case, MNKD goes to $0.00 and you lose your 1R. Best case… geeze, who knows? This Bio Therapeutic company was at $10+ only 2 years ago. That would be a nice ROI if it actually pops! 

Thanks so much for reading! If you have any questions, let me know!