If you shorted in months of Nov, Dec, Jan, Feb and May you've probably made some money (you'll need to see a 1-yr chart).
If you shorted in months of March, April, or June, your probably not making money.
In either of the above scenarios you could make an argument to close out of your short positions by 1) collecting profits because the market in general is rising (thank you Greece) and 2) limit your losses from shorting around the $8 range.
The only reason not to close out of your short position is that you believe that FTR's business model is similar to Blockbuster in that the industry is dying proposition (land lines). If you subscribe to this argument then the recent runup is nothing more than a blip to an evitable downturn. In this case, you're not worried because you'll close out your short position when the stock hits $4 or lower.
"In this case, you're not worried because you'll close out your short position when the stock hits $4 or lower."
Don't think so. People have been saying this for the last 10 years. Look at how well WIN is doing. I think FTR is at the bottom of a cyclical run back to pre 2009 levels ie 14. I happens about every 7 years. I give it about 2-3 more years till we get there and I'd be happy for it to take that long while I ride the divy all the way to the top. I believe the shorts will slowly die off. Remember part of FTR are businesses and as the economy gets better FTR as a whole will rise with the tide as some have said.
"The only reason not to close out of your short position is that you" think FTR will continue to under perform the market. Most shorts are against paired trades (long VZ short FTR) or (long SPY short FTR) or (long SDY short FTR) that have been working so far this year. Other shorts are against option positions.
BUT, short interest fell:
by about 4.9 million shares. FTR was right around $8 at the time of this report. So, the short covering has started, but as is typical the shorts are covering at low prices not causing a huge price run up.
6/30/2011 is a calendar quarter end and some shorts may have booked profits or reduced their positions just for this reason. They may reset those closed out shorts if their paired trades get back to good levels.