Advanced Scanning for Penny Stock Offering Plays

1. Scanner Setup

• Platform: Use a real-time scanner like Trade-Ideas or EquityFeed.
• Filters:
  • Price: $0.50 to $10.00
  • Average Daily Volume (30 days): > 300,000
  • Float: < 50 Million
  • Relative Volume: > 3.0
  • % Change from Close: < -15%

2. News Catalyst

• Keywords: Your scanner should also be able to scan news headlines for keywords like "offering," "secondary," "direct," "ATM," and "dilution."

3. Pre-Market Gappers

• Gap Down Scan: In the pre-market, scan for stocks gapping down more than 10% on high volume. These are often potential offering plays.

4. Level 2 and Tape Reading

• Identifying Selling Pressure: Once you have a potential candidate, look at the Level 2 and Time & Sales (tape) to confirm heavy selling pressure.

5. Real-World Example

• Scanner: Trade-Ideas
• Alert: A stock, EFG, hits your scanner. It's down 20% pre-market on 5x relative volume.
• News: You check the news and see they announced a secondary offering.
• Confirmation: You look at the Level 2 and see a large seller at the ask.
• Action: You have a high-probability short setup.