Update: General Electric Co. (GE) VS United Technologies Corp. (UTX)

On June 29th I tossed a trading idea go long $GE and short $UTX with a 5:1 ratio.  Below is the original chart:

Below is an updated chart as of today.  As you can see, the trade worked out but not great.  At least it didn’t lose money.  One caveat is that this the period straddles earnings season so at the very most I would have had a half position size.  Since I was on vacation, I didn’t take this trade.

I noted that the risk was down to $2 spread price and it traded right into that region before reverting.  The trade could continue to move toward $12 but I feel that the trade is done.  The next move may be a retest of the lows, especially since the spread has spent a lot of time validating prices at these levels.

Read original post: Trade Idea: General Electric Co. (GE) VS United Technologies Corp. (UTX) (Dynamic Hedge)

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