Last night, there was news that BA got a contract from the DOD for $1B/year over 5 years. This seemed insignificant compared to their $60B annual revenue, so I put out 1100 up $1.30 from the close. Everything was looking good this morning until the jobs report lifted everything. The Dow was up almost 1%, and took most of the profit out of my trade as a result. Tonight, I'm short (just 500) WMT, on similar stupid news runup (dividend upped by $0.02/yr, insignificant buyback). I've considered hedging with an equivalent opposite DIA or SPY position (or ZD or ES futures position yesterday), but didn't pull the trigger. Anybody have any thoughts on this? Do you routinely hedge or partially hedge news arb positions like this (assuming you trade them - I'm not really looking for an argument on that)? How often do you end up getting boned both ways because something happens to your stock to move it against you AND the hedge loses money for a different reason?