Wow… yesterday was a brutal day. In last week’s tech stock newsletter, I wrote about the perils of shorting certain stocks. I certainly did not expect AOL (AOL) to be part of that group. But after announcing a surprise sale of patents to Microsoft (MSFT) for $1B or so, the stock shot up nearly 50%… killer. Thankfully, another one of my short positions, Pandora (P) moved down as well (no significant news). The end conclusion is that the long Apple (AAPL) and short AOL (AOL) trade is now down 47,64%!. The long LinkedIn (LNKD) and short Pandora (P) position is up 25.32%… bringing the average trade return so far this year to 2.21%, not bad, but far off what it was on Friday. Oh well!
Both trades will be closed out on the open today:)