spread trade MGM and LVS

Discussion in 'Stocks' started by mikeenday, Jun 9, 2011.

  1. mikeenday

    mikeenday Guest

    buy MGM and sell LVS
  2. 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.
  3. mikeenday

    mikeenday Guest

    don't you know to keep trading simple?


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

    bone ET Sponsor


    2 Year OTR correlation is + 75.2%


  7. 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?
  8. 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 ?
  9. bone

    bone ET Sponsor

    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.
  10. 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.
    #10     Jun 10, 2011