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Non-Tech
Paired Trades and Hedging Strategies

An SI Board Since October 2004

Posts	SubjectMarks	Bans
136	15	0

Emcee: Biomaven	Type: Unmoderated

Introduction Compact

A "Paired Trade" is buying one stock or index and simultaneously shorting another. It is a bet on relative performance rather than absolute performance - you can make money even though both stocks go down, just so long as your shorted stock goes down more than the stock you are long.

Good paired trade opportunities are infrequent, but can be gems when you find them - very low risk for the reward.

This thread is meant to explore opportunities, ideas and strategies involving paired trades. General ideas and discussion on hedging are also welcome.

Go to reply# or date (mm/dd/yy):

Reply	Message Preview	From	Recs	Posted
136	Thank you for your reply, I understand the concept more clearly now. (Sorry, fri	tyc:>	-	7/17/2009
135	No, I wouldn't consider those two a paired trade. The essence of a paired tr	Biomaven	1	7/16/2009
134	These two ? Same questions <img src='http://stockcharts.com/c-sc/sc?s=$	tyc:>	-	7/16/2009
133	Would this "pair" qualify in principle? If so which wd you short and	tyc:>	-	7/16/2009
132	Finding that it can be quite painful to invest in alternative energy without a c	Sam Citron	-	9/5/2008
131	>>Use WFC Understand, but BAC has a much higher div. :-) WB could be su	IRWIN JAMES FRANKEL	-	8/21/2008
130	Use WFC. Dale Baker over at 50%.... has a list of 5-6 bank pair trades that loo	Robohogs	-	8/20/2008
129	Here is a paired trade: Thesis - Stress of the credit crunch on financials, FNM	IRWIN JAMES FRANKEL	-	8/20/2008
128	How about a wimp out and using MRO instead? Their value has gotten stupid here.	Robohogs	-	7/10/2008
127	>>You think the refiners are a buy here? Yes I do. But I have not pulled	IRWIN JAMES FRANKEL	-	7/10/2008
126	There was actually a paired trade involving TSO suggested on Seeking Alpha - lon	Biomaven	-	7/9/2008
125	This is an option strategy using LEAPS similar to one I did on COP in the 50'	IRWIN JAMES FRANKEL	-	7/9/2008
124	edit - added prices Short DISH 30.85 Long DTV 27.81 Thesis: DTV growing via ma	IRWIN JAMES FRANKEL	-	6/19/2008
123	Short DISH Long DTV Thesis: DTV growing via market share transfer from DISH, wh	IRWIN JAMES FRANKEL	-	6/19/2008
122	I would be careful of MS. Jon	Robohogs	-	3/17/2008
121	Nice call. Something to be said for going with the best capitalized and smarte	Biomaven	-	3/17/2008
120	Tempting to think about taking off the Goldman/Bear pair trade, but I'm incl	Sam Citron	-	3/17/2008
119	<del>	Sam Citron	-	3/17/2008
118	you bought ETFC at 11...did you get a do over?	bmillermn	-	2/5/2008
117	ETFC:OXPS -- Daily Chart <img src='http://stockcharts.com/c-sc/sc?s=ETFC	pcyhuang	-	2/5/2008
116	Long ETFC, Short OXPS <im	pcyhuang	-	1/23/2008
115	I don't think 3Com/Palm is a good example. Four months after Palm's IPO	CrazyPete	-	9/12/2007
114	Look at how much VMW was bought for by EMC too - nuts. This kind of disparity c	Robohogs	-	9/12/2007
113	Yes, through Fidelity at least: I sold a few shares this afternoon. I'm als	CrazyPete	-	9/12/2007
112	Is VMW shortable?	Robohogs	-	9/12/2007

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