Aqua Metals (AQMS) Update: This Stock has Moved

And the verdict is in … DOWN!

Earnings came out yesterday and they lost over $4M. I don’t even know if this was above or below expectations because I don’t think any one covers them. But clearly the stock is sinking on 3x volume.

Recall my post from last week: Aqua Metals (AQMS): This Stock is Going to Move…

If this stock is destined to fill the gap, which puts it down to $11.50. If this breaks $10, it’s going down to $3 and perhaps to $0 as the bear argument (referenced in the previous post) suggests.

I tried to short the stock in the morning, but this stock is hard to short through my broker. I was tempted to buy some way out-of-the-money put options, but I’ve not had much luck in the past with timing. I could be proven right, but be early, and thus lose on the trade.

So, I took the safer route. I layed up. Not as big a reward, but more measured and a higher chance to succeed. I sold some May 19 $15.00 Call options. These are already out-of-the-money and expire at the end of next week. I’m feeling good about that.

I can envision a dead cat bounce happening tomorrow or soon, but the gravitational pull of that gap will be strong.