Google and Apple: Get a Pair!
Risk management over reward chasing as we together find our way.
Editor's Note: Todd posts his vibes in real time each day on our Buzz & Banter.
I've been talking about it for over a week -- and indeed, I traded Apple (AAPL) from the long side before getting shook out -- but I'm back, baby, as I leg into the other side of aforementioned pairs trade.
I bought Apple September calls this morning against the Google (GOOG) September puts that I purchased late last week. This pair trade is dollar-neutral and they're both right sized in their own...right.
My price target on the former is $623 while the price target on the latter, through a pure technical lens, is $522.
As we practice risk management over reward chasing in these parts, my upside buy-stop in Google is $605 while I'll use a break below $550 in Apple as a sell-stop. And of course, as we like to be more flexible than a yoga instructor, I reserve the right to unwind this trade as a function of time or price.
We'll of course update that in real-time on the Buzz & Banter (click here for a free trial) but I wanted to share this fare for those who care. See the charts below, and as always, I hope this finds you well.
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Todd Harrison is the founder and Chief Executive Officer of Minyanville. Prior to his current role, Mr. Harrison was President and head trader at a $400 million dollar New York-based hedge fund. Todd welcomes your comments and/or feedback at firstname.lastname@example.org.
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