For those of you who followed our AERL trade based on the rights offering, we are taking profit on the majority of our position here. We bought the stock at an average price of $3.35 last week into the expiring rights offering and have now made 19% in just four business days.
Note that this trade worked even in the midst of turmoil in Chinese markets (where AERL operates) and as rising interest rates drove down U.S. markets. It will not always be the case that a warrant expiration or rights offering expiration will perform in a declining market, but we are very happy with the trade here.
For those of you who followed our trade and bought in the $3.25 – $3.50 range, congratulations!
If you’re looking for how we found this trade and why we did it make sure you sign-up to get our report on trading warrant / rights offering expirations. Good luck in your trading!