DRIO (DarioHealth) Short Sale – Early Exit Due to Lack of Borrows

DRIO (DarioHealth) offered a short sale opportunity today, but a lack of shares to borrow from Interactive brokers resulted in a cautious trade and early exit.

DRIO (DarioHealth) jumped nearly 70% on news that their blood glucose monitoring iPhone app gained FDA approval. Although good news, this Israeli company has a history of failed runs and no financial filings registered with the SEC. Because of these fundamental red flags and technical over-extension, I short-sold 4k shares. Unfortunately, Interactive Brokers ran out of shares to borrow after a 2,250 fill, and I wasn’t able to average up into the bounce as planned. Due to this inability to average, the play became dangerous and resulted in an early exit and meager take ($260).

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