Stratagem Trading – Pair Trading Class
Spreading one stock against another (such as Coke vs Pepsi) is a tried-and-true hedging strategy many firms have an entire trading desk devoted to. An even more interesting, predictable and consistent strategy is trading one index against another. One of the best “pair” trades is the SPX (SPY) against the QQQ.
The largest stocks that make up the SPX/SPY are the same that make up the QQQ index – AAPL, MSFT, AMZN, NVDA, GOOG, etc. This makes for a high degree of correlation and predictability between the two indexes. Obviously, the cost of buying and selling indexes can be prohibitive. Futures have their own complications associated with it. Creating a PAIR trade with options, however, can be used to customize any risk characteristic and directional bias you can image or desire.
Explore all the possibilities of this powerful strategy with the full 10-hour recording and bonus classes, and master a a totally unique way of minimizing risk while creating opportunity.
What You’ll Learn In Pair Trading Class
- Class Recordings (~10 hours)
- Handout of Class Slides
- Put/Call Worksheets
- Introduction to Pair Trades Write Up
- Actual 3-Leg Box Example Applicable for Alchemy, Day Trading, Hedging and Closing Positions
More courses from the same author: Stratagem Trading