NDQ/DJI - Short; Significant Statistical Arbitrage opportunity!

5 Feb 2023

While the NDQ/DJI, itself, represents a significant trade opportunity here, even more notably, a number of the index components display remarkably skewed "Greeks"! (For example, APPL-GOOGL, CAT-PEP, TSLA-BA, etc..) E.g., It is a rather strait forward process - at these levels - to assemble baskets of stocks (Long) in each index (Short) with rather juicy, +30%-40% near term (<7 months!) profit targets.
All this is a strait forward process - once one starts looking :-)

p.s. Will provide ideas for some of these stock baskets if/as time allows.

5 Feb 2023

Catatan

Here is the Daily;


Note;
While an outright Short Entry into this Spread will soon be appropriate - so watch for a reversal! ...
... The ultimate trade here will be the properly assembled (DJIA) Stock Basket LONG vs. an NDQ (index) SHORT.
(Specific recommendations as time allows - hopefully soon.)

8 Feb 2023

Catatan

One (simple) example of a [Dow] Stock Basket vs the Nadaq;



This example, however, accurately denotes the above mentioned +40% profit potential. (... and on a reasonably short time horizon.)

Note
There is an even richer/better (>50%) profit potential, assembling this same position employing Calls + Synthetic Puts with March, 2024 expirations. (Betas & Thetas are notably worth a look - skewed -, at the moment!)