Monday, May 15

FTR/PR shares rebounded dramatically, giving us a strong edge over the market. On Friday evening our position in SNAP went to its worst case scenario, but again that only put us down something like $150. It was a well designed position. We should have known better than to take a position like that on a new issue just before an earnings report – the stock had fallen 25%, but is now back up almost 18%. We designed another position to take advantage of the probable rise back to its previous value – a covered call that should allow us some measure of safety (assuming there isn’t another drop). We’ve set up a series of conditions with intent to form the position, we’re just waiting for them to be met.

Ford was up again today, but they’re still far below the average fair value estimate. This evening and tomorrow we’ll be looking into why that is, and determining our next moves based on our findings. Look for an analysis sometime Wednesday.

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