A trade that sometimes works is getting long crummy stocks a few days prior to them being delisted.

The mechanics of this trade are simple.

These stocks are often badly beaten down which is why they are getting the boot from Nasdaq and being forced to the OTC market.

As a result of them being awful companies, they are often heavily shorted by firms, funds, and fundamental style traders.

Often, millions of shares are held short.

Now, many think these traders are short until the inevitable 0, but many actually are just there for the delisting headline, and then don’t want to deal with the headaches of the illiquid OTC market, the transfer over, and would rather just cover days before the actual delisting.

As a result, often these stocks will have a strong day which is indicative of these short sellers covering and many others then deciding they should cover.

This can cause a bit of a squeeze, sometimes even as far as a few hundred percent before the delisting.

$ADAP just announced the other day they will be getting delisted from Nasdaq to the OTC market on the 27th (final day of trading on Nasdaq).

(*Thanks Ask Edgar for making reading filings, dilution/offering risk and news so easy!)

And today, on October 22nd 2025, it traded unusual volume.

It ended the day up just over 45% on “unusual volume” with a relative volume reading of 4.3.

As a result of understanding the mechanics of this trade, and how traders, firms, and funds think who are short these types of stocks, I decided to buy $ADAP at 0.078.

I am long $ADAP in hopes of a squeeze of maybe 20 to 100 percent or more before delisting.

Nearly 14% of the float is short, which equates to nearly 35 million shares!

And, do they really want to deal with the illiquid OTC market?

Probably not!

Anyways, I am risking 2-4 cents in hopes of making 40+, with an okay likelihood of that playing out.

Good luck! This is not investment advice, just a trade I have on for now!