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June 30, 2026
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Following
Doing a sell recommendation pitch and selling it, for example
Going long stock in this situation has worked out recently
I was gonna say buy the equity stub and DM Dave Portnoy on Instagram / Twitter and watch it 10x in 2 days
But yeah, what you said.
Wasn't someone "100% certain" another stock would go bankrupt? Should have went long...
https://www.investopedia.com/news/why-tesla-verge-bankrtuptcy-vilas-cap…
@SEC
CDS?
Could short its bonds/use CDS/otherwise bet against non-equity instruments.
Could go long its nearest competitor, if you think the competitor will survive.
sec
Long any beneficiaries of that company going to zero.
Short its suppliers, assuming it's a big customer. Many companies will disclose customers that are 10%+ of sales in 10-K. If one of those customers is going BK, no good for the supplier.
look to purchase the 'fulcrum' security
oom puts
Buying bonds/loans at distressed prices assuming attractive creation multiple for the post emergence company.
Short bonds/buy CDS if think bonds will fall.
Buying trade claims at a discount assuming you think there will be a full recovery.
Buying puts on the equity.
Of course most of these things 1) aren't for retail investors, and 2) more importantly, its often extremely difficult to source these securities - a bond might be quoted at an attractive distressed price but more times than not there is minimal if any offered for sale - or the price of the carry of a short will be prohibitively high eroding potential returns.
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