free lunch (?)

Discussion in 'Trading' started by SethArb, Jun 6, 2008.

  1. if you look hard enough and are a real ET maven

    you might find an odd lot out there this am ( pre market )

    a free lunch so to speak of in a commodity based ETF

    say 72 shares being mispriced ... yours for the taking

  2. m22au


    Can I ask the obvious question Seth - why are you posting about the arb and not taking advantage of it yourself?
  3. good question ...

    I took some of it already but there is not enough out there to hedge for me ... I might decide to grab the last few shares

    ( if they are still there )

    you might say I got lucky

    was short an odd lot of shares in this ETF overnight
    and saw an opp. to take a small loss and go long
    and prob. make alot more than my loss

    ( which was about $10 )
  4. update decided to take the remaining 72 shares myself !

    the stock was USO by the way

    gotta go now ... I see another ETF with mispriced shares

    ( only 100 though )

  5. brief synopsis of trades taken

    bought GLD $87.07 as Aug. futures were making new highs
    above $886 overnight

    sold higher ( forgot exact price GLD these went for but for sure at least 50 cents higher later in the am )

    covered sale of uso ( 28 shares $103.68 @ $103.99 then went long @ the covering price )

    as july crude was hitting new highs above $130 fig overnight

    sold em out way too early @ $106.20 avg approx