Quote from lojze:
If this is true, it is better to stay away from such "opportunities", right?
Or this is still not so ?
The general rule is to buy, but do not exit your position until after the exchange clarifies the situation as to which orders, if any, will be busted.
Normally, any competent and professional exchange will make a decision on what trades to bust *before* reopening for trading. It is critical to market integrity that, once trading is reopened, there is confidence that all trades will stand.
In this case, with Nasdaq deciding to bust trades *after* the stock was reopened, they have shown themselves to be an incompetent and unprofessional exchange, IMHO. A futures exchange like Eurex or the CME would never do that.
Fwiw, my trades took place after the bustout time period, so I do not have any sour grapes behind my comments.
To reduce your "exchange incompetence" risk, you can hold into the close, or buy put options, thus converting your long stock into a long call position. This way you can maintain the upside, without risking nearly so much on the downside.
