Telecom Multi-Way Conclusion
- Posted by DynamicHedge
- on January 13th, 2011
This is an update from a previous trade and updates. This trade turned out to be a bit of a go-nowhere deal after the last update. I bought a bit on the pullback and sold a bit adjusting hedges along the way. I don’t want to get into too much of the minutia because it sets a bad precedent. People will start to “expect” things from me.
The green arrow is where I initiated the position. The first red arrow is where my algo turned and I lightened up most of my position. I left a small amount on to ride out the remainder of the month. The second arrow is where I sold my remaining position (Dec 31). Check the previous posts for more color.
I’m happy with the trade even though I had much larger expectations for the payoff. I feel I managed the trade well and stuck with my plan.
A couple footnotes: Selling out of this position was the final work related chore I had to complete before the New Years Eve festivities could begin. $Q was the sleeper in the trade. It was incredibly strong and represented a huge portion of the profits. The $VZ short was much stronger than I anticipated. I was pretty confident being short $VZ because I felt that the Verizon iPhone was 100% priced in and some air might some out of the stock as the year ended with no deal. The $VZ ended up being the biggest loser. Just goes to show that opinions mean very little to Mr. Market.
Disclaimer: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please click here for a full disclaimer.
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DynamicHedge is an equities, futures and derivatives trader based on the West Coast. He runs a long/short opportunistic relative-value strategy within a proprietary trading group. More
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