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
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
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
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.
^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.
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.
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
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