Trading CIGX bounce for 32% one day profit after patent lawsuit issues caused massive 70% drop

32% profit in 1 day after collapse in CIGX due to confusion over value of the company due to lawsuits. Risky situation but worked out well.

Could have made a lot more holding another 4 hours, but when I saw the Bloomberg article reporting “This is a complete loss for Star and basically makes their business worthless.”  I was glad to be able to exit gracefully.

This is the four hour chart showing the worthless company producing a 32% one day profit.

Trading a bounce like this requires extreme care about the entry because of the huge volatility. Here are the notes about how I chose the entry point.