Friday, June 30

Instead of examining CLD today we instead initiated a position in Unisys Corporation. Our entire thesis revolves around the inflated price of the call options, nothing to do with the underlying stock in particular. While they have an earnings call in early August we intend to have closed our position more than a week before that – we noticed today while running a screener that their call option bids had climbed out of line with the real volatility of the underlying asset. It seems likely that some entity was attempting to hedge a large position, but that is simply speculation.

Regardless of the reason for the variation, our position ended today up more than 4%, and we expect that figure to remain fairly steady until expiration in mid July.

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