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I doubt it - etrade is a publicly traded company and all the changes have to be announced.

Good point.

To make half a million a year one have to have at least 1 mln account balance.

By how much this is ahead of SP500 index so far?

It would be interesting to see what thirsty is going to do next after his contract is already losing money.

The more important question is whether this thread is going to bring us there and how long it will take? :)

How many contracts?

Wow, the more complex strategy produces no better actual returns than S&P500 index. Something to think about.

Guys, what kind of average annual returns one should expect from stocks pair trading?

Apparently it's less stressful to charge people for trading advices than to do the trading by himself.

Of course he knows - this security can't be in 2 accounts at the same time. This other customer is most likely other security broker, not a retail customer. Otherwise it would be stealing not borrowing. :)

Because they have to borrow it from him.

This is very unlikely because they borrow this security and they have to pay an interest on it which they are going to pass surely to you. Treat it with caution.

How are you guys going to get around the problem of paying interest on short positions?

whitster, It's true that if stock plunges to 0 for a very short time before your naked puts expire then you risk is predetermined & limited. But if the time the stock's price goes to 0 is longer then the puts expiration period and you will keep on writing naked puts on this stock year in year...

But you still have to pay the margin interest, right? What correlation percent are you normally looking for when choosing a pair?

How practical is trading the pairs of stocks. I mean the broker margin on short position should surely take a big bite off the profits. How do people work around this problem?

Why for EUR/USD pair there is unlimited upside for EUR but not for USD ( which is effectively for EUR/USD puts) ?

Couldn't help yourself, ah? Would be interesting to hear how would you articulate this bottom line 4?

That's because stocks historically deliver higher value than cash. But it should not be true for all financial markets and at all times.