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Scott Redler: Using the Tier System on UBER

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Your P&L isn't only determined by your entry and exit.

How you manage the trade along the way matters a lot.

So let me give you a look at how I use a Tier System to trader around names, using Uber (UBER) as an example.

UBER was on my radar last week, and I grabbed some shares on Thursday morning around $44, as I shared on the Redler All-Access private Twitter feed:

UBER had a solid green day, closing at $45.30.

Then, I was looking to add a second Tier to add on a move through the $45.50-$45.75 area:

Uber kept pushing higher on Friday hitting a high of $47.08 and closing at $46.38.

And as you can see on the right of the chart, UBER opened up today, and I sold most of my position over $47.

It goes to show -- if you're not ready to commit to a position, think about starting small and waiting for a breakout. 

That way, you can at least get confirmation that a trade is in motion. 

Now, I'm watching for an opportunity to add back to my UBER position.

Positions Disclosure: As of 7/1/2019 at 11:20 a.m. ET, Scott J. Redler was long TWTR, DIS, UBER, NFLX, SYMC calls, TWTR calls, AMZN calls; is short JPM