Hi, Does anyone else do this. Sometimes they get out of whack. Of course as we learned from LTCM they could get more out of whack, but usually they dont and with stops they make decent trades. For example, I arb'd between YM and NQ today (long YM short NQ) and its up decent afterhours, the reason I did it is because YM is too oversold versus NQ. Even if I am wrong, the differential is so great that I have to see the differential shrink to make money. These trades arrive from time to time and seem like no brainers. Obviously if you are in a directional trade then you cant participate but I was curious if anyone else does this? Currently the position (ah on the yhoo miss) is trading at +115 per YM/NQ pair. I know there are pair traders, but I'm refering to specific indexes/components with futures or some sort of decent leverage. (Using options is more difficult because of greeks/etc) I say this because it seems the like least risky trade when they arrive yet hardly anyone talks about them. Why?