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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.

Click to enlarge

Click to enlarge


Twitter: @todd_harrison

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No positions in stocks mentioned.

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

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

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