timwest
Long

Coca-Cola Company KO Daily - Lagging the SPY with low volatility

NYSE:KO   COCA-COLA CO
283 views
4
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 market. If they both go down, again, we want to see KO do better and decline less than the market. The profit is in the difference between the performance and not the outright performance of KO .

Tim KO 40.96+0.30 (+0.74%) SPY 194.46+0.16 (+0.08%)
Subscribe to my indicator package KEY HIDDEN LEVELS $20/mo or a discount for a year and join in the trading room KEY HIDDEN LEVELS here at TradingView.com

Comments

Wow that's a smart move!
+1 Reply
It will only look smart if it makes money :-) But it is a strategy I am comfortable with.
Reply
Nice profit so far. A couple of % gain in a short period without any loss along the way. So far, so good.
Reply
2use timwest
But do you pay brokerage fees? Or do you trade large amounts?
Reply
KO grinding higher and beating the SPY over the past two days. KO +2.0%, SPY only up 0.7%. 1.3% profit in 2 days.
Reply
Comment removed.
timwest Ameliia Diukre
That is a long link - what is in the link? Let me know before I click on it. Thanks.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out