The KO/PEP pairs trade

The pairs trade closed the spread further today, and potentially closing out the short leg is worth having a look at. Meanwhile the long leg, the KO leg, looks to be worth holding onto, or even as I did yesterday, opening a purely directional trade.

Here is last week’s Trade of the Week, which is still open and running this week.

It is a pairs trade involving KO & PEP. We are looking for that spread to close. It is a market neutral trade, and therefore not terribly correlated to directional market movement.

KO made a big move, and gave some back Friday, but this trade is looking good.

I’ve entered the Trade of the Week, and as usual now, I’ve taken a screenshot that I’ll compare again at the end of the short week.

Opening trade of the week now. I’ll post the chart at the end of the week along with the trade.

Didn’t do a great deal this week. Pretty much followed the market.

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