• Wolfspeed stock has roughly doubled after the company announced its next chief financial officer.

• Gregor van Issum will become Wolfspeed's CFO on Sept. 1 and will be guiding the company's financial restructuring.

• Some investors are betting that Wolfspeed will be able to navigate bankruptcy in a way that works out for current shareholders.

Wolfspeed stock is seeing massive gains on Monday. The company's share closed up 95.8% despite the S&P 500 and Nasdaq Composite indexes fell 0.8% and 0.9%, respectively.

Before the market opened this morning, the silicon-carbide specialist announced that it had named Gregor van Issum as its next chief financial officer. The news prompted the stock to rocket higher, and it soared as much as 135.1% at one time.

Image source: Getty Images.

Van Issum will be succeeding interim CFO Kevin Speirits and will step into the position on Sept. 1, at which point he'll be helping to lead the company's bankruptcy and financial restructuring proceedings. Wolfspeed stock tanked in May after it was reported that the company was preparing bankruptcy filings, and the business later confirmed it had filed petitions for reorganization under the Chapter 11 provision -- but shares have now seen a substantial rebound.

Is Wolfspeed stock a buy right now?

Van Issum will bring more than two decades of experience in corporate restructuring and strategic financing to the CFO role at Wolfspeed, and today, investors are showing some hope that he'll be able to guide a financial transition that will work out for current shareholders. On the other hand, Wolfspeed has a high level of debt, and current shareholders could still get wiped out as the new company issues shares to reset the balance sheet. While the stock could bound significantly above current levels, there's also a high risk of investors losing a lot of their money.