Cover your shorts and go long. That way you will make up your losses for last week. Buyouts/rumors, it doesn't matter. The stock price will skyrocket because all reasonable investors know the stock is worth $50+ after the most reasonable highest estimate of their liabilities. If you say different, you are just going to lose big time. Don't try to talk the stock down. Big fish in this sea will kill your shorts. You are samll fish.