Verifone Spread Gaining Momentum
- Posted by Michael Bigger
- on December 5th, 2012
I think if this 5 * $QQQ – 7 * $PAY spread, which is currently trading at $106, trades below $100, we should have the momentum in place to push it down to its average of $70 or much lower. If you look at the chart of $QQQ vs $PAY (graph at the bottom of the image located below), you can see how much potential energy is embedded in the spread. We are short this spread.
Makes sense? Click here to view this spread in the Spread Analyzer.
Written by Michael Bigger. Follow me on Twitter and StockTwits.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Michael Bigger is an investor and a trader who has been involved with trading technologies for more than twenty years. In 1992, Michael joined Citibank as head trader of U.S. single-stock derivatives, where he managed a $5 billion portfolio of equity derivatives. In 1998, he joined D.E. Shaw & Co., L.P. to trade the U.S. equity derivatives portfolio. (More) -
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