Today we watched yesterday’s buy-write in Snap Inc. (SNAP) pop up on a continued rally after SNAP’s disappointing Q1 revenue. That position is set to self-terminate in mid August, but we expect the option to close the position well before then (any day now). ROI on that position is set to be well over 20%, leaving us regretting not taking a larger position.
We also saw very strong gains in SeaDrill Partners (SDLP), but were unable to confirm any reason that might have been. It has historically been a fairly volatile stock, but today saw a 7% jump early in the session that stayed up throughout the day. We’re not sure if that will continue tomorrow, crude was up but only slightly. Our only possible explanation was a sharp dip in the US dollar in early trading – its possible a larger foreign investor took that opportunity to acquire a dollar backed position.
FTR/PR is continuing to display fairly erratic behavior – up 5.5% today, and up 8% yesterday, but displaying wild variations intra-day. The common FTR shares are displaying very similar behavior, but not always in the same direction on the same days. It’s very clear that there is a strong lack of consensus among investors, and investors afraid of the insolvency risk are still waiting to get out of the stock.