HOW TO SHORT Zynerba Pharmaceuticals Inc STOCK (ZYNE Stock)

HOW TO SHORT Zynerba Pharmaceuticals Inc STOCK (ZYNE Stock)

It is time to make some serious cash and you will need to know how to short Zynerba Pharmaceuticals Inc stock in order to do it.  Unless you have been living under a rock, you know that big things happened to Zynerba Pharmaceuticals Inc. (ZYNE $14.40) and their stock price over the last two days.  I am just going to recap the specifics for those of you who are under that rock.  On Monday March 14th, GW Pharmaceuticals PLC- ADR reported positive phase 3 pivotal study results for their drug Epidiolex.  It is a cannabis based drug that is predicted to help people who are suffering from certain seizures.  Their latest round of tests came back with some very good news, which is that their drug works on decreasing said seizures.




Now that you have a quick idea of the catalyst of why a these marijuana stocks went crazy this week, let’s get down to the specifics.  GW Pharmaceuticals PLC- ADR (GWPH $79.87) went through the roof when they announced their findings.  The stock opened closed on Friday March 11th around $38 a share and then the announcement came and then it went crazy.  It opened March 14th at $84.81.  It was over a 100% gain.  Then we have Zynerba Pharmaceuticals Inc. riding on the coattail of GW Pharmaceuticals PLC- ADR’s announcement.  Because Zynerba works with similar marijuana treatments, the thought was that they are on to something big as well.  So POP goes Zynerba and that stock goes from $8.44 a share to $21.08 on Monday.  On Tuesday March 15th, it was time to “beware the ides of march”.  These stocks have two directions to go to the well experienced in this kind of rapid price appreciation.  Knowing how to short Zynerba Pharmaceuticals Inc stock could help you going forward with this problem.  You see, they could go through the roof again like KBIO did a few months ago and crush the short sellers, or they go both see deep declines on profit taking and a realization that they are still losing money and no new drugs to stop this were actually announced…yet.  You see that both GWPH and ZYNE stocks plummeted on some major profit taking on Tuesday. GWPH ended down at $79.87 and TYNE ended the same day down to $14.40.  Huge decreases by both, but with TYNE really taking the dive in percentage terms.  With that being said, where do we go from here to take advantage of these stocks?




How To Short Zynerba Pharmaceuticals Inc Stock?

How To Short Zynerba Pharmaceuticals Inc Stock?Now we have the next few days to worry about in order to take full advantage of this correction.  There is no way I can see this stock going up at this point.  The profit takers are all over this and let’s face it, ZYNE is truly just riding the coattail of GWPH’s news announcement.  So pay attention here, you will want to short ZYNE stock.  I will say this again, you will want to short ZYNE stock if you love making money.  It is a simple play in my mind.  ZYNE is dropping at a larger clip because they had no information released by themselves that told the market that they deserve to have their stock price jump by well over 100%  It almost tripled on price with no company specific news, just hopes of similarities.  I am not saying that this company won’t experience a real jump based on their own information, but this is not it.  This literally looks like a “pump and dump” run on ZYNE.  Time will tell, but I would highly suggest being very careful with this stock.



Where Is Zynerba Pharmaceuticals Inc (ZYNE) Stock Going?

I see ZYNE dropping over the next few days and closing in on its original price within the next two weeks.  I don’t believe it will hit the original $8.44, but it will hover around the $9 to $10 range.  But until we reach the price, there is a great opportunity to cash in on the downward spiral which should happen in the upcoming days.  With the stock severely overpriced, you have yourself a great chance to cash in on this.  To be safe, I would suggest shorting it for Wednesday and as it continues downward over the next few days, you will want to lock up the profits in case of another run. (Even though I don’t one coming)  Short cover 75% of your shares when it hits $11 a share and then highly consider leaving the stock altogether when it hits $10 a share.  The final exit on this is the hard call.  You have a possible dropping back to $8.40 a share.  But there is easy money to be made out there then risking too much on that last dollar or two drop.  Knowing how to short Zynerba Pharmaceuticals Inc stock is the key to growing your portfolio’s worth and this should help.

How To Short GW Pharmaceuticals PLC- ADR (GWPH) Stock?

How To Short GW Pharmaceuticals PLC- ADR (GWPH) Stock?Looking at how to short GWPH, it is similar, but not the same as ZYNE.  I would suggest to tread a little lighter with this stock.  It is the one that actually earned the price boost.  But I do believe that a 100% increase was a bit high and many people out there are going to realize that I am right in this thought.  I would want to risk more on ZYNE, but I would also want to short GWPH.  Understand that you will probably not get the same correction percentage on GWPH as you will get with ZYNE.  So take GWPH’s nearly $80 price tag and expect it to decrease back down to the $60 dollar range in the long run while awaiting final approval for their new seizure drug.  I suggest putting out a fill order as soon as the stock hits $70 a share for half the stock and then cover another 10% every $5 lower in share price.  If the stock drops and makes a big run, you will want to cover the rest of the shares at $77 a share.  This will allow you to secure a nice profit for the gimme.

Well at this point, the cards are on the table and now only time will tell what will happen.  I will update as the days move forward, but this is a big play for those looking to make some quick play in the short game.  You do not get many opportunities like this when it comes to taking advantage of an overbought stock for all the wrong reasons.  Buy on the news folks, not the hype.  Short sell on the hype and cover on the news always works out a bit better for me personally.  You now know how to short Zynerba Pharmaceuticals Inc stock as well as GWPH’s stock, so enjoy the profits my friends and you can thank me later.  Take a look here at some of dividend stocks that can help make you rich.  Good luck and happy trading…Moe

UPDATE 3-17-16:  Well it looks like we nailed this one!  Since Tuesday, ZYNE is now down to $9.96 a share and GWPH is down to $72.18 a share.  Remember that at this point that you should be liquidating some of your short positions to lock in the profit.  We are looking at a solid 30% plus gain on ZYNE and about a 10% gain on GWPH.  Remember that I stated above that you were not going to see the same kind of volatility in GWPH’s stock due to the fact that they are the one that received the positive results from their drug.  ZYNE was a hype stock that was cashing in on someone other company’s  news.  At this point, I am liquidated 90% of my position in ZYNE and 90% of my position in GWPH.  I think you could see some more profit taking from both, but not enough to warrant risking more than the stated above amount.  Congratulations to all those who jumped on board this short sale.  Time to pop the champagne and enjoy another round on Wall Street.  If there is any movement up above 5% of its current price, I will be closing out both positions. 

 



HOW TO SHORT Zynerba Pharmaceuticals Inc STOCK

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