Tuesday, February 22, 2011

Learning Spread Trades: Update

In my previous post I outlined my trading plan for a stock spread: Long 12*UNH, Short 7*WLP.  I said I wanted to buy the spread for under $40 and sell around $53.

Well, I got in at $38.94 on 2/18, using a limit order at $39. I sold 2/22 for 61.14, using a $53 limit order. Both the long and short side of the trade were green.


The spread is looking a little overbought. I may even consider shorting it soon, maybe above $64. But for now, I can sit back and smile at a well executed plan.

3 comments:

Anonymous said...

Congrats

that worked out perfect and better than I expected

Chris said...

I know, seriously, it was perfect. Good to learn without paying market tuition. I'll probably pay up on the next spread attempt.

Mike said...

Are you interested in discussing anything having to do with spread trading and me doing the software development work? I really want some info on it.
how to trade stocks for free

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