spread trade MGM and LVS

[mikeenday]

buy MGM and sell LVS

 

[stock777]

congrats.

im sure 100's if not 1000's of et readers will jump all over this, given your extensive and detailed reasoning.

even a 2 bit racetrack tout says 1 or 2 words about the horse.

 

[mikeenday]

don't you know to keep trading simple?

KISS

Quote from stock777:

congrats.

im sure 100's if not 1000's of et readers will jump all over this, given your extensive and detailed reasoning.

even a 2 bit racetrack tout says 1 or 2 words about the horse.

 

[shortie]

Quote from stock777:

congrats.

im sure 100's if not 1000's of et readers will jump all over this, given your extensive and detailed reasoning.

even a 2 bit racetrack tout says 1 or 2 words about the horse.

as somebody who never posted a trade before the fact you demand unreasonably much.

 

[bone]

2 Year OTR correlation is + 75.2%

 

[Fireplace]

IRONY ALERT!

Quote from stock777:

congrats.

im sure 100's if not 1000's of et readers will jump all over this, given your extensive and detailed reasoning.

even a 2 bit racetrack tout says 1 or 2 words about the horse.

 

[stock777]

Laugh all you like, it only proves you are not taking advantage of my winning calls, which means I have succeeded on all fronts.

said 1260 didnt I? deaf?

 

[luisHK]

Quote from bone:

2 Year OTR correlation is + 75.2%

i'm not sure how to read your chart, but seeing how LVS has outperformed MGM over the last couple of years, wouldn't it be better to buy LVS and sell MGM, at least if one is bullish on those stocks ?

 

[bone]

Quote from luisHK:

i'm not sure how to read your chart, but seeing how LVS has outperformed MGM over the last couple of years, wouldn't it be better to buy LVS and sell MGM, at least if one is bullish on those stocks ?

Luis, I just published the chart without input, but you and I see things alike with this one.

stock777, you deserve a treat. Go get an ice cream cone.

 

[Trader13]

There may be two different analysis frameworks for this trade. The OP did not state his rationale, but if this is a pair trade based on mean reversion (convergence of net difference in prices), then his trade might make sense for a shorter time frame. Alternatively, if this is a spread trade based on relative value (divergence), then the chart bone provided would suggest a different trade, perhaps for a longer time frame. As previous posters indicated, you really need to elaborate on the motivation for the trade to evaluate it properly.