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Long ES, Short ER2


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#1 eminimee

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Posted 21 May 2007 - 07:34 AM

I mentioned a few weeks ago how you could go long ES and short ER2 ...For those who do not know.. ER2 will move 100.00 per contract per dollar move, ES will move 50.00 per contract per dollar move. The relative strength ratio is now breaking down imvho.


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#2 Massimo

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Posted 21 May 2007 - 07:44 AM

You are pointing to the downside, assuming that the ER2 has been the weakest in this leg up? Not sure that the right spread is 1/1 considering the different volatility Why do not use Options for spread trading?

Edited by Massimo, 21 May 2007 - 07:46 AM.