This is bad cause you're chasing a gain. From a technical stand point it is ok at best. They just covered the gap so who knows what will happen from here. This is free reign for the stock to literally drop with no bottom, Technically speaking of course. I mean if you wanted to only look at the positives it is ok, but extremely risky. I wouldn't suggest anyone get into this with out doing some major research, and find out and explain exactly why the stock dropped and come up with a reasonable argument as to why it won't fall more.
Very true. It ran up a quick 50 cents today (50 cents of an 80 cent run?), and although it may have a bit more to go, it could easily fall back - with very few days to recover if it moves against you. I did pick up a few Oct 29 calls for .10 yesterday, and quickly got out at .20 and .25 today. May have left some money on the table, but I don't know/trust HTS enough to hold into next week. Doing the same with a small NLY call (some Oct 17s @ .30) position.