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Pair trades everyone should be making right now

Posted on 2/11/16 at 6:48 am
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 2/11/16 at 6:48 am
I'll start.

Long APA & APC Short XOM
This post was edited on 2/11/16 at 6:54 am
Posted by Starseed22
Under DIA
Member since Aug 2011
538 posts
Posted on 2/11/16 at 7:16 am to
So I get the basic concept of pair trading but why short XOM? Is it simply because they seem to be overvalued in your estimation? Just curious to your reasoning as most on this board hold long positions on XOM. Or maybe Im misunderstanding how to correlate stocks for pair trading...
Posted by raw dog
Baton Rouge
Member since Nov 2011
483 posts
Posted on 2/11/16 at 7:24 am to
Not going long APA
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 2/11/16 at 7:39 am to
No current pair trades, but since January I'm in these positions as trades:

GM Long Mar 33 Puts (Edit - Closed)
XLF Long Apr 22 Puts
DRI Long Apr 55 Calls
LMT Long Jun 200 Calls
XLNX Sold Mar 41 Puts
DRI Sold Mar 55 Puts

Darden is kind of a pair trade, but not technically a pair trade.

I was in GDX/DXY and VIX/SPX.

I'm not sure everyone should be making pair trades, but this is my extremely conservative current trades.
This post was edited on 2/11/16 at 7:44 am
Posted by TigerDog83
Member since Oct 2005
8274 posts
Posted on 2/11/16 at 7:45 am to
quote:

Long APA & APC


I wouldn't be long on any resource/shale producer at this point. Lots of these companies might not be alive at this point next year, although I would think Anadarko would be one of the safer bets.
This post was edited on 2/11/16 at 7:47 am
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 2/11/16 at 8:02 am to
My best pair trade these days is to put $100 on both red AND black.....
Posted by JamalSanders
On a boat
Member since Jul 2015
12135 posts
Posted on 2/11/16 at 8:02 am to
Dumb questions but what is a call and a put?
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 2/11/16 at 8:06 am to
A call is a long position with a predetermined maximum certain loss, a put is a short position with a predetermined maximum loss.

So above I paid for the right to either buy or sell the stock at a set price, except for the last two trades where I sold someone the right to sell those stocks to me at a set price.
Posted by LSURussian
Member since Feb 2005
126962 posts
Posted on 2/11/16 at 8:08 am to
Call = option to buy. Buy a call option if you think the price of the underlying security is going to increase.

Put = option to sell. Buy a put option if you think the price of the underlying security is going to decrease.
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 2/11/16 at 8:48 am to
I wish I was in VIX/SPX today. Alas, only in VIX as insurance.
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 2/11/16 at 8:59 am to
Opened Short ALLY/Long VIX Calls. Day trade.
Posted by LSU0358
Member since Jan 2005
7918 posts
Posted on 2/11/16 at 9:02 am to
quote:

I wouldn't be long on any resource/shale producer at this point. Lots of these companies might not be alive at this point next year, although I would think Anadarko would be one of the safer bets.


This x 1000. I think we are do a bounce in oil at any time from a technical standpoint. Fundamentals are horrible though so a bounce will be short lived IMO.
Posted by b-rab2
N. Louisiana
Member since Dec 2005
12576 posts
Posted on 2/11/16 at 9:06 am to
Link b/c the img won't work

When do we break out of the channel is the real question. I thought we were going to break out of it and hold the $32.5.
This post was edited on 2/11/16 at 9:08 am
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 2/11/16 at 9:09 am to
ALLY/VIX Closed.
Posted by Iowa Golfer
Heaven
Member since Dec 2013
10230 posts
Posted on 2/11/16 at 9:18 am to
What's that a chart of?
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 2/11/16 at 9:24 am to
That's a great explanation of a out and a call. I'm going to keep that one.
Posted by Fat Bastard
coach, investor, gambler
Member since Mar 2009
72615 posts
Posted on 2/11/16 at 9:40 am to
quote:

My best pair trade these days is to put $100 on both red AND black.....




Posted by b-rab2
N. Louisiana
Member since Dec 2005
12576 posts
Posted on 2/11/16 at 10:20 am to
Light crude futures
Posted by whodatigahbait
Uptown
Member since Oct 2007
1749 posts
Posted on 2/11/16 at 1:15 pm to
quote:

I'll start.

Long APA & APC Short XOM



please explain your logic behind this...i'm having a hard time understanding your thesis
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 2/11/16 at 3:10 pm to
XOM is the shelter in the storm that every active manager without a thesis is running to. Lesser known names that are lightly leveraged will do better once the panic disappears.
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