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PPR - MOTR spills the milk.

MOTR, which showed a "bottom-fishing" type of pocket pivot move yesterday is getting kicked around after earnings post-close. As with any stock going into earnings, one must always scale any position taken in the stock in accordance with one's own risk tolerance. If you just entered a position in the stock, you are essentially gambling that the earnings announcement will be in your favor. Sometimes a pocket pivot can presage a strong earnings report, sometimes not. The real issue here would be risk management. Just for fun, we decided to take a small, reasonably scaled position in the stock (around 5%) given that we were already having a nice day with the move in MCP. So in this case if the stock gets whacked 20% we get hit 1%, which is more than reasonable. If you try to get piggy because you think a pocket pivot is a "sure thing" then you don't understand pocket pivots and you certainly don't understand risk management.  

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