NASDAQ:OSTK paid 21.5M for the Bed Bath & Beyond brand (in bankruptcy) and gained around 228M in market cap in just one day. That's one amazing return on investment!
With hindsight, I can see how the confirmation of the 200DMA breakout was a buy signal ahead of today's surge. Now, OSTK trades far too high above its upper Bollinger Band (BB) to chase. Instead, it is buy the dip time on OSTK but downside risks could still be large. I would minimize the downside risks by looking to buy a "calm after the storm" setup. Per swingtradebot, a calm after the storm...
"...finds stocks which have recently had a significant range expansion and are now experiencing range contraction. A trader can use the contraction to anticipate a return to an expansion phase. One idea would be to enter a trade as price exceeds the range of the contraction bar with a stop-loss at the other extreme of the contraction bar."