The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

ATPG will file soon. News broke but no shares at IB. Its a shame, I would have gotten in at $1.20 ish, reacted quickly but no luck
 
Compounded the situation by not checking for SSFs. Stock has it, I could have shorted. I bet the MMers will NOT quote anything reasonable after the halt ends
 
Using PCX as guide ATPG is likely to trade at 0.30 after bk
Both have similar balance sheet sizes and are in similar sectors. I got filled on a whooping 1 contract of the SSF after the halt. I might not even make money, MMrs took care of their risk well. Before the halt I'm sure their quotes could have been shorted nicely. Lesson learned
 
I noticed that after I got filled the MM algo immediately dropped their bid by a lot. They probably programmed into the algo that if the vol spikes and all the sudden they start getting hit, the quotes are then made 'wide' with bids dropping and asks rising. I wonder if anyone else noticed this

If that is true always hit them with full size, don't break the order into pieces, take all of what is available on the quote. I didn't do this here because frankly the futures price was damn low
 
Some HFT stock Market Makers sometimes 'pull away' their quote and give you a small fill when you try to take them for the whole thing they are displaying. I just hope that is not the case with OneChicago market makers because if it is, the whole exchange is a joke
 
ATPG filled for Chap 11. I'm making a whooping $20 there, if there were shares to short on the day of the rumor OR if I didn't make the bad mistake of not checking for the single stock future until it was late, I could have made $2,000 or more for a few hours of wrok
Or maybe even just buying puts after the rumor, not a big fan due the spreads but in a situation like this its probably the right play
 
If anyone have other stocks on the bankruptcy watch let me know, so far this thread had a few names mentioned before they went bust(And to profit all one had to do was have a good news service and be quick to act after rumors break)

FMCN might get acquired, still holding my puts there, market is SUPER skeptical of the deal, stock is trading quite a bit bellow the takeout price

I did cover EDU after the FMCN news because it look like the chinese are even bigger scumbags than thought. Seems like they will try to cover up their frauds by forcing buyouts to keep the ponzi going
 
And these buyouts seem to be gunned towards stocks exposed by Muddy Waters, the most vocal firm about chinese fraud. I'm not sure how this dynamic will play out, I don't think the chinese has that much money to burn buying crap fraudlent companies but the squeeze potential of muddy picks will go through the roof in the meantime(the muddy panic sell-offs also will get smaller, at least for now)
 
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