What are some trade ideas in a docile market? Selling premium is out as there just isn't much premium to sell out there. There are always trade opportunities and luckily TheoTraders know exactly where to look. In this weekend edition let's look at a pairs trade. First a brief crash course on what pairs trading is and then a pairs trading set up that you can take with stock, options, or Futures...
1 Comment
Ky
August 20, 2016Don,
Very clear presentation on pairs trade, but why SELL the QQQ and BUY the SPY? Is it just the difference in VEGA between the two, or are you predicting a move down in the QQQ and/or up in SPY?
Thanks,
Ky