There is a big divide here between the performance of the overall market and the performance of KO, Coca-Cola. The way to set up this trade is to go long KO and sell short an equivalent $-amount of SPY shares. Over time, I think that KO will start to outperform the market and this trade will make a profit. If they both go up, we need KO to do better than the...
PAIRS TRADE: Dunkin Donuts versus Starbucks DNKN and SBUX trade in a tight range of about 20% per year (note the blue box at the bottom of the chart) and now DNKN is lagging SBUX by 18%. Upside potential is roughly 10%-15% and risk is 5%. DNKN 44.04 last -0.29 on the day SBUX 74.69 last +0.73 on the day Friday, June 13, 2014 5:43PM EST
Michael Kors KORS - Daily (sell short) either outright, if you are unfamiliar with PAIRS TRADING. Or as a pairs trade, sell short KORS versus going long in Coach Inc COH (go long) Sell Short KORS 94.10 last -0.23 Buy Coach COH 40.50 last +0.51 I've been waiting for awhile to get a good technical setup on KORS as a short sale. The setup I wanted to find was a...