here is logner term chart of this trade. it is dollar for dollar so i look to make on the entire trade 107 dollars profit if this pair goes back to zero and i am currently down 43 bucks due to the pair being at -150. I added some risk doing another unit and dynamcially changing the spread but i feel like this sudden push higher in TSLA and the selling in NKLA will be short lived and that is what i am trying to take advantage of here.
TRADERKING007 Pair Trade Recos
- Thread starter traderking007
- Start date
Pairs trading is a completely different animal then your susal buy and hold there will be days here soon where this trade is up 300 to 400 in a day and tesla may have barely moved or nikola may have barely budged. anyway i am hedged eventhough the correlation is crappy but again i am ok with it for right now.
down 97 dollars on long nkla short tesla
chart
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10 units will be my cut off on this trade. i may not get to that many depending on what the market does
will be selling more tesla today n buying nikola. should get up to 5 units today. will update.
holding this pair but it is in the money and makig money here is the chart for the last 5 days and i think it has turned the corner. this chart is the actual dollar amount of my 5 units which is my entire position.
Remember because I shorted tesla i used the this money i collected to buy nikola nkla so i have not had to come out of pocket anything so far except for my short margin costs which are very cheap right now due to the low interest rates we have.
Good luck and i still love this trade.
Remember because I shorted tesla i used the this money i collected to buy nikola nkla so i have not had to come out of pocket anything so far except for my short margin costs which are very cheap right now due to the low interest rates we have.
Good luck and i still love this trade.
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oh wow magic man absolutely crushes it NIKOLA up 45 % and tesla down 20 % lets see what my return will be on this later today when i cover all of it!
