timwest
Long

Coca-Cola Company KO Daily - Lagging the SPY with low volatility

NYSE:KO   COCA COLA CO
249 6 4
There is a big divide here between the performance of the overall market and the performance of KO             , Coca-Cola.

The way to set up this trade is to go long KO             and sell short an equivalent $-amount of SPY             shares.

Over time, I think that KO             will start to outperform the market and this trade will make a profit. If they both go up, we need KO             to do better than the market. If they both go down, again, we want to see KO             do better and decline less than the market. The profit is in the difference between the performance and not the outright performance of KO             .

Tim KO             40.96+0.30 (+0.74%) SPY             194.46+0.16 (+0.08%)
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2use
2 years ago
Wow that's a smart move!
+1 Reply
timwest PRO 2use
2 years ago
It will only look smart if it makes money :-) But it is a strategy I am comfortable with.
Reply
timwest PRO 2use
2 years ago
Nice profit so far. A couple of % gain in a short period without any loss along the way. So far, so good.
Reply
2use timwest
2 years ago
But do you pay brokerage fees? Or do you trade large amounts?
Reply
Comment removed.
timwest PRO Ameliia Diukre
2 years ago
That is a long link - what is in the link? Let me know before I click on it. Thanks.
Reply
timwest PRO
2 years ago
KO grinding higher and beating the SPY over the past two days. KO +2.0%, SPY only up 0.7%. 1.3% profit in 2 days.
Reply
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