AMD

[traderking007]

even with that chart you should open it up to a daily and see how many years you can go back.
you weighted your own pair yesterday but you didnt weight mine which is odd ?

i am not day trading my long intc and short AMD. it was just what 3 years ago when AMD was a 4 dollar stock!! hmm you think that just disappears that they when the are weak they are REALLY weak. don't you think INTEL as in intelligence is working on some stuff like next generation stuff to be ahead of the pack including AMD. just like they always are.

i mean look at AMD for years with super slow single threading!! that was the bottle neck up until last year and most stuff back then and even now is really single thread stuff. i am running AMD i like AMD but intel is too cheap compared to AMD and i am sticking to my plan. AMD by chasing the smalles processor widths may be forgetting what is coming next

 

[traderking007]

good questions though it always get people thinking nice post here is my chart on the pair buy intc and sell amd and i am collecting a 3 % dividend while only paying what on my margin? it is a free trade giving me positive carry on my margin debt so i am actually in this trade 100 % for free and getting paid to hold it while beig hedged. you can do carry trades like this when dividends are larger than the margin debt because when i sell AMD i collect that cash and turn aroudn and buy INTC with that money. now my broker charges me interest but so long as it lower than my dividend then i am in a carry trade with stocks that is hedged

 

[traderking007]

charts

 

[traderking007]

which one of these would you want to own?
income of 20 billion? or income of 596 million?
who do you think has the money for reasearch and development? this is a long term trade could be a year or 2 easy but if i get what i want quickly i will take it and get right back in if amd gets expensive again. can i lose yup but this trade is far far far from not working

 

[destriero]

you think looking at that chart tells you anything about my trade? it tells you zero. the number of variables in a paris trade can be astronomical. pairs trsding is not just about charts. but let me ask you a question would you buy that pair before earnings or after when it was cheap?
i like your nvda/amd only because i am short AMD in my pair. but truthfully you are entering at a pretty expensive point there was a much better entry but you are going with the trend so i think it is still a good trade so long as you weighted it properly

you can pair based on debt, pe, cash to book blah blah blah it is not just charts in pairs
i am in around -7 and i should have bought more when it dropped to -50 that was a gift that i passed up and i wont let it happen again !

your chart seems to missing any kind of sensible hedge from what i can see.

Hedge? The chart expresses equal $-weighting. It's equal notional. You don't even know what you're looking at.

AMD has destroyed INTC since the first of the year. I was long AMD from 51 outright. I dumped it when the specs came to light on the Big Navi card. I don't have a position in the shares or vol.

lol I know you don't trade but apparently you can't even read a chart. Dude thinks INTC outperformed AMD and his thesis? INTC has more revenue. Wow. You'll go far.

 

[destriero]

Not quite David & Goliath. AMD being roughly half of market cap compared to Intel. The key here is that Intel does not have 10nm process in production and 7nm is far off. For AMD 7nm is already over a year old. Intel did go to TSMC to ask for their help in production but that's hardly a Goliath move.

And how did AMD lost big last selloff? Down from 92 to 82? Ugh, alright. Intel down 52 to 49.

In any case, it's all forward looking and Intel isn't coming up with anything. Their latest message was "Benchmarks don't matter". Sure...

^this^


Intel's yearly refresh is like a 5-6% performance boost because they won't release 7nm until 2022 earliest. They are literally 3 years behind AMD in CPU. Regardless, I don't trade based upon the fact that Intel has more rev or AMD has 7nm. The pipeline was caught unaware when AMD rolled out their 7nm desktop and mobile.

AMD will see tremendous leverage on the top line in the Fall, which is why the shares have rallied from 50 to 90.

 

[destriero]

you think looking at that chart tells you anything about my trade? it tells you zero. the number of variables in a paris trade can be astronomical. pairs trsding is not just about charts. but let me ask you a question would you buy that pair before earnings or after when it was cheap?
i like your nvda/amd only because i am short AMD in my pair. but truthfully you are entering at a pretty expensive point there was a much better entry but you are going with the trend so i think it is still a good trade so long as you weighted it properly

you can pair based on debt, pe, cash to book blah blah blah it is not just charts in pairs
i am in around -7 and i should have bought more when it dropped to -50 that was a gift that i passed up and i wont let it happen again !

your chart seems to missing any kind of sensible hedge from what i can see.

The number of variables? It would help if you could complete a full sentence.

You buy one and short the other. Unless you're in vol you just sound stupid... which I suspect is the problem here. Blocked.

 

[traderking007]

the more you tell me the more i realize how all of this baked into the price which is great for my trade. not sure what your point is

 

[traderking007]

equal notional lol

 

[traderking007]

one thing I am learning very quickly is how easily someone can see what another person understands about trading and the markets is by watching them talk about a pairs trade. the idea that you would equal weigt intc and amd is absurd and beyond any level of comprehension in the realm of trading.

no one would trade intc vs amd in equal weights. ever