WOLF shares more than doubled even after the semiconductor firm filed for Chapter 11 bankruptcy on Tuesday. Here’s how to play Wolfspeed stock following the rally.

Key Takeaways Wolfspeed shares took off when, as expected, the struggling chipmaker filed for bankruptcy.The company explained that the move was part of its plan to work with key lenders to have its debt restructured.

Wolfspeed said on Monday it has filed for Chapter 11 bankruptcy protection, as the chipmaker grapples with huge debt amid slowing demand from electric vehicle and industrial markets. Shares of the company — which makes chips using silicon carbide,