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Revision History For: Trading post-bankruptcy bounces

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Return to Trading post-bankruptcy bounces
 
A stock often trades 100-300% up on short covering after the company files bankruptcy. Enron, for example, went from 0.29 all the way up to 0.80 in just 2 days. Since so many companies are filing Chapter 7 or Chapter 11, this could be a nice trading strategy - getting long for several hours or 1-2 days before the inevitable bankruptcy filing... This thread will discuss such trading opportunities.

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