JCP will go BK or not. If you think that BK is in the future for JCP then you should short the stock (although it seems you missed most of the move down already and the risk seems quite high from here on the short side if no BK). If you think that JCP survives, even if it takes time, you should start building a long term position in this one. Not all of your money at once, there still may be some more down side from here. Every month put add to your position. If there is more downside you get cheaper shares on your next purchase. IF the price starts to recover, you may pay more for your next shares but at least you are making money on the shares you already bought. Do that every month for a few years and then years from now you will have a quite sizeable position in a recovering stock. Buy when there is blood in the street, and right now JCP is a bloody mess.