Failed Trade - ALTH

I failed trade ALTH today.

ALTH is failed to develop one of their two drugs. I have never seen a stock failed drug can go up like this.

My error:
1) When the price go up in the premarket, I think it is a good buy, since the company will go down heavily due to its failure drug development. But I am wrong. So WHEN STOCK GO UP, NEVER SHORT IT. This is the same error on ROLL trading.

2) As a day trading candidate, I can not short. This is what I confirmed today. Short such a low price stock require large amount of margin. It is not deserve to short stock as a trading candidate. NEVER SHORT ON DAY TRADING.

What is the makeup?
I did not recover at all, because I do not know when the stock will go down. After all, their drug is failure. But I also do not have money to short them more when the price go up since short low price stock require so much margin.

What I did is buy back part of the stock and at the same time, buy put option. At this time, I need to buy a little bit more put contract since option is not 1:1 to the stock. I guess 2:1 maybe a good choice (Also include some additional short power).

Finally, it goes down. Also I still lose some money, but just a few.

DO NOT DO ANYTHING ERROR AT THE BEGINNING. NEVER SHORT WHEN THE STOCK IS GOING UP.