Cover On A Bounce

This term basically means that a stock trader is using a trading strategy that benefits from some pretty intricate movements in a stock price. The idea is that they cover their short on a stock by closing the position after the stock has dropped, bounced back, and dropped again. They do this because they think the stock will go even lower to make up for the bounce back.

We don't recommend you try this at home, but good for the Wall Street dudes who can pull it off.