Telecom Multi-Way Conclusion

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.


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