Position Sizing

Good morning folks, 
I thought I would explain my position sizing in GPRO heading into their earnings report. 

First of all I always look at earning as a potentially binary event and I recognize that it is basically gambling on the outcome by taking a position. earlier this week I decided to take a position @ 28.75 with the intent to hold it through earnings. Now I knew it was a binary event with a stock that was already in a primary downtrend and the expectations for earnings were extremely low. The stock is trading near its IPO price. In my mind, at some point GPRO goes from being a momentum play to a value play. It no longer commands an extreme valuation and if it tanks low enough it could even become cheap. The question that is out there is if GPRO is just a one trick or one product pony. That will take awhile to find  that out since they have no new products scheduled to come out in the next quarter or two. Their earning missed the street and got whacked but then it really took a hit when they gave their guidance for the next quarter during the conference call. 

So how was I positioned and what will I do moving forward? 

I had less than .0005% of my portfolio in GPRO>> I was treating it as a pure lotto play or a 5 team parlay. I have no plan to sell GPRO nor do I plan to add to the position until I see some signs of stabilization in price or an extreme capitulation where it sets up for a potential Snap back play. 

At some point the price may become attractive enough for someone that wants to enter the market of action sports cameras and may look  to acquire Gopro. However, if and when that may occur is anyone's guess and at what price point it becomes attractive enough is the question. The company did announce a share buyback program so that could help establish a floor for the stock.  

So essentially GPRO was a gamble and I wanted to have a little skin in the game but knew what the risks were and I positioned the size of my involvement accordingly. 

The only difference with GPRO and a lottery ticket is I don't have to crumple up the ticket, throw it in the trash and walk away a loser. I still have the shares and over time who knows what will happen to GPRO the value of the stock. Maybe it goes to zero and maybe they come out with another super mega hit product and the stock takes out its all time highs. That is the beauty of the stock market and why I love being involved but I always have a plan and the amount of risk I take is directly proportionate to how big of a gamble I think I am taking. The bigger the gamble or higher the risk the smaller the position.

Stocks on my radar premarket

Bullish and may have a swing or lottos in play

Cautiously optimistic

Very Cautious may even present a short opportunity .

MGM	MGM Resorts Reports Confidential Submission of Draft Registration Statement by MGM Growth Properties

MGM	MGM Resorts Shares Spike Following Plans To Create A REIT

Full disclosure this is my favorite Casino stock and in my long term hold account it is testing resistance @23 premarket may look for a pullback to add to my position 

IQNT	Inteliquent Raises FY15 Rev. From $240-$250M To $245-$255M
07:07:53am 10/29/15 IQNT	Inteliquent Reports Q3 EPS $0.25 vs. Est. $0.23, Rev. $63.716M vs. Est. $59.15M
04:07:50pm 10/22/15 IQNT	Inteliquent Reports Authorization of $50M Stock Repurchase Program

Full disclosure I hold lottos from a swing trade in this one and its looks like it could take out 52 week highs I am looking for a 25 test eventually 

:02 am Revance Therapeutics reports positive 6-Month duration in BELMONT study (RVNC) : The topline interim data showed that RT002-- a botulinum toxin type A investigational drug product candidate for injection-- achieved its primary efficacy measurement for all three doses at 4 weeks. The study demonstrated 6-month RT002 median duration of effect based upon at least 1-point improvement in glabellar lines at maximum frown on the Investigator Global Assessment-Facial Wrinkle Severity (IGA-FWS) scale.

Tiny float big gapper only phase 2 data but balance sheet seems to be in good shape but they could still raise capital getting squeezed premarket don't chase it but could set up for a scalp 

LOCK	Lifelock Skyrockets Following Q3 Earnings Report

.Big gapper decent balance sheet I wouldn't chase it but it could set up intraday for a scalp decent sized short position 

SONS	Sonus Networks Reports Q3 Adj EPS $0.11 Vs Est $0.06, Sales $67.9M Vs Est $64.81M; Sees Q4 Revs $73M-$75M Vs Est $76.95M; Sees FY Loss $0.05-Loss $0.08 Vs Est Loss $0.08 & revs $246M-$248M Vs Est $246.60M

Caught an upgrade this morning looking for a potential 7 roll look for some volume small float decent balance sheet could be ready to break out of  range 

Potential continuation and a break of this the downward channel its been trading in Looking for a day trade setup and a 7 test