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PAIRS Trading : "Hedged Trades" matching Longs with Shorts


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Good going so far!

 

---

 

I am wary with looking at large cap stocks such as Amazon. Big fish are manipulating as they know where people are likely to put their stops. $285 is a key level that I would go long on just clearing it, but then last week it closed under $285 which would probably trigger my stop if I played that trade (and a lot of others). Now it it back over $285, and now the chart looks (to me) more bullish again, and more so above $300. Today it sits at $294.

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Actually, These are not real trades with real money,

so I am being a bit sloppy, and looking at the prices only a few times per week.

 

If I had real money at stake, I would probably use STOPS, especially when I have a profit to protect.

 

As it is, I am letting some trades go from Profit to Loss, with a desire to learn something from the price moves.

 

If I can gain some more knowledge from paper trading here, I might consider some real PAIRED trades like this later,

and especially, the Options pairs, which are inherently less risky.

 

Do not hesitate to suggest PAIR TRADES, or suggestions,

And if you are moved to do so, you can even start a Portfolio of your own, and do a weekly Valuation, as I am doing here.

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I am considering LONG PBW (Clean Energy etf) vs. SHORT OILB (Brent etf) or USO (US Oil etf)

 

But I would want to play it with Options, at least on the Oil side, since "event" might bring a spike in Oil

 

(In edit, on Wed.)

 

Long PBW-- : $05.79 : $05.99 : +$0.20 +x%

Short OILB - : $72.51 : $69.77 : - $2.74 -x%

RATIO P./O. : r7.99% : r8.59% : + 7.45%

 

Short USO - : $39.36 : $39.34 : - $0.02 -x%

RATIO P./U. : 14.71% : 15.23% + 3.51%

=== == ===

 

A good idea at the time.

PBW / OILB is already up 7.45%

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Exiting all POT Long positions at $32.45*, as POT trades down today, after a nice run-up

 

Yesterday's close was $32.82, after a nice run-up ... POT-intraday

 

*Including Sept. Calls.

 

jqav.gif

 

I will need to soon find a way to neutralise my unhedged MON short*... MON-intraday

 

No need to worry about the MON Sept.$100p, since it could do no worse than expire worthless

 

== ==

 

*In edit, I am placing a BUY stop at just over today's HOD, at $103.26

 

**Edit2: Price is back up to test recent high on FRIDAY

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FRI-Price update /

============= : 2WksAgo : 8/30 : 09/06 : 09/13 :
SPX-Index --- : 1,6XX. : 1,6XX. : 1655.17 : 1687.99
GG -.Goldcorp: $31.02 : $29.50 : $29.35 : $26.44
AMZN-Amazon: 290.01 : 280.98 : 295.86 : 297.92
==
POT-.PotashCp: $29.86: $29.64 : $30.17: $32.49
MON-Monsanto: $96.22 : $97.89 : $99.89: 104.18
--
GG---Jan$27C-: $05.45 : $04.43 : $04.20: $02.48
AmznJan300P- : $25.70 : $31.25 : $22.42: $19.55
--
POT- Sep$29C- : $ 1.54 : $ 1.40 : $ 1.46 : $ 3.47
MON-Sep100P- : $ 4.50 : $ 3.25 : $ 1.66 : $ 0.14
===
JCP -JCPenney: $13.17 : $12.48 : $14.27 : $13.82
TTC -Toro Corp: $52.83 : $52.81 : $53.16: $54.92
==== : Ratio-----: R0.249: R0.236: R0.268: R0.252
. . .
PBW ----------------------------------- : $5.790 : $5.880 :
OILB ----------------------------------- : $72.51 : $70.52
Ratio ----------------------------------- : r7.99%: r8.34%
USO ------------------------------------ : $39.36 : $38.85
Ratio ----------------------------------- : 14.71%: 15.14%

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(Last Week -1: Sept. 6th)

 

DrB PORTFOLIO-1 : 06-Sep. (SPX at $1655.17, Down -3.19% from $1,709.67 start) :

.

Down just - 1.97% in Week Five, and now + 3.87% overall.

Time decay left 2b Options in a loss, while 2a was only a small loss.

=========================

. .

D : Symbol : Type-: 9/06 Price- : #.shs : Valuation / Date------- : StartPr : BasisValue: Pr/Loss : Marg/Prem

=========

1a

+ : GG--- : comm.shs : $29.35 +364 :+$10,713 // 02 Aug. 13 : $27.45 : +$09,992 : +0,721 : $ 01,998

-- : AMZN: comm.shs : 295.86 +033 : ($ 9,763) // 02 Aug. 13 : 305.57 : ($10,084) : +0,321 : $ 02,017

======================== : ==== :: +00,950 // ========= : ====== : $ -00,092 : + 1,042 : $ 04,015

1b : Realised Profit : +GG, -AMZN : $+00,000 // on GG Trade : ------- : $+00,000 : +2,926 :

1c

+ : GG--- : Jan$27C : $04.20 x +07ct = $ 02,940 // 02 Aug. 13 : $03.25 : +$02,275 : +0,665 : $ 02,275

-- : AMZN: Jan300P : $22.42 x +01ct = $ 02,242 // 02 Aug. 13 : $20.15 : +$02,015 : +0,227 : $ 02,015

======================== : ==== :: +05,180 // ======== : ====== : $+04,290 : +0,892 : $ 04,290

==

2a

+ : POT-- : comm.shs. : $30.14 : +339 :+$10,217 // 02 Aug 13 : $29.48 : +$09,994 : +0,223 : $ 01,999

-- : MON- : comm.shs. : $99.89 : - 103 : ($10,289) // 02 Aug 13 : $97.37 : ($10,029) : (0,260) : $ 02,006

======================== : ==== :: -00,072 // ========= : ====== : $-00,035 :($0,037): $ 03,995

2b

+ : POT-- : Sep$29C : $01.46 x +07ct = $ 01,022 // 02 Aug. 13 : $02.04 : +$01,428 : -0,406 : $ 01,428

-- : MON- : Sep100P : $01.66 x +02ct = $ 00,332 // 02 Aug. 13 : $04.40 : +$00,880 : -0,548 : $ 00,880

======================== : ==== :: +01,354 // ========= : ====== : $+02,308 : -0,954 : $ 02,308

==== : Profit/(Loss): $+3,869

==== : +Marg/Prem :: $14,608

==== : Add: Cash--- : $85,392

 

= : Overall Value : $103,869 : +$3,869, +3.87 %

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DrB PORTFOLIO-1 : 13-Sep. (SPX at $1687.99, Down -1.27% from $1,709.67 start) :

.

Down just - 1.06% in Week Six, and now + 2.77% overall.

Time decay left 2b Options in a loss, while 2a was only a small loss. ???

=========================

. .

D : Symbol : Type-: 9/13 Price- : #.shs : Valuation / Date------- : StartPr : BasisValue: Pr/Loss : Marg/Prem

=========

1a

+ : GG--- : comm.shs. : $26.44 +364 :+$09,624 // 02 Aug. 13 : $27.45 : +$09,992 : - 0,368 : $ 01,998

-- : AMZN: comm.shs : 297.92 +033 : ($ 9,831) // 02 Aug. 13 : 305.57 : ($10,084) : +0,263 : $ 02,017

======================== : ==== :: -00,207 // ========= : ====== : $ -00,092 : - 0,105 : $ 04,015

1b : Realised Profit : +GG, -AMZN : $+00,000 // on GG Trade : ------- : $+00,000 : +2,926 :

1c

+ : GG--- : Jan$27C : $02.48 x +07ct = $ 01,736 // 02 Aug. 13 : $03.25 : +$02,275 : - 0,539 : $ 02,275

-- : AMZN: Jan300P : $19.55 x +01ct = $ 01,955 // 02 Aug. 13 : $20.15 : +$02,015 : - 0,060 : $ 02,015

======================== : ==== :: +03,691 // ======== : ====== : $+04,290 : - 0,599 : $ 04,290

==

2a

+ : POT-- : comm.shs. : $32.45 : +339 :+$11,001 // 02 Aug 13 : $29.48 : +$09,994 : +1,007 : $ 01,999: Closing

-- : MON- : comm.shs. : 103.26 : - 103 : ($10,636) // 02 Aug 13 : $97.37 : ($10,029) : (0,607) : $ 02,006: Closing

======================== : ==== :: +00,365 // ========= : ====== : $-00,035 : +0,400 : $ 03,995

2b

+ : POT-- : Sep$29C : $03.45 x +07ct = $ 02,415 // 02 Aug. 13 : $02.04 : +$01,428 : +0,987 : Closing

-- : MON- : Sep100P : $00.14 x +02ct = $ 00,028 // 02 Aug. 13 : $04.40 : +$00,880 : -0,852 : Open

======================== : ==== :: +02,443 // ========= : ====== : $+02,308 : +0,135 :

==== : Profit/(Loss): $+2,770

==== : +Marg/Prem :: $14,608

==== : Add: Cash--- : $85,392

 

= : Overall Value : $102,770 + $2,770, +2.77 %

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FRI-Price update / 09/20


============= : 2WksAgo : 8/30 : 09/06 : 09/13 : 09/20 :

SPX-Index --- : 1,6XX. : 1,6XX. : 1655.17 : 1687.99: 1709.91

GG -.Goldcorp: $31.02 : $29.50 : $29.35 : $26.44 : $25.82

AMZN-Amazon: 290.01 : 280.98 : 295.86 : 297.92 : 316.34

==

POT-.PotashCp: $29.86: $29.64 : $30.17: $32.49 : $32.24

MON-Monsanto: $96.22 : $97.89 : $99.89: 104.18 : 106.05

--

GG---Jan$27C-: $05.45 : $04.43 : $04.20: $02.48 : $02.16

AmznJan300P- : $25.70 : $31.25 : $22.42: $19.55 : $12.35

===

JCP -JCPenney: $13.17 : $12.48 : $14.27 : $13.82 : $12.96

TTC -Toro Corp: $52.83 : $52.81 : $53.16: $54.92 : $54.56

==== : Ratio-----: R0.249: R0.236: R0.268: R0.252 : R0.238

. . .

PBW ----------------------------------- : $5.790 : $5.880 : $6.040

OILB ----------------------------------- : $72.51 : $70.52 : $69.21

Ratio ----------------------------------- : r7.99%: r8.34% : r8.73%

USO ------------------------------------ : $39.36 : $38.85 : $37.77

Ratio ----------------------------------- : 14.71%: 15.14% : 15.99%

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