Ocean Power Technologies ($OPTT) drops 31.25% after dropping a reverse stock split announcement directly into the tape. Dip buyers love to step in front of severe gaps, assuming the selling must be exhausted.
The historical tape does not share that optimism. Across 971 catalyst-driven gap-downs of 30% or more, stocks close red 59% of the time with a median intraday drift of -3.00%. In $OPTT's own history across 13 previous gap-down sessions, it closes red 54% of the time. The discount usually keeps discounting.