Warning: Following my trades may be hazardous to your financial health. See Disclaimer.

Thursday, May 17, 2012

Getting Burned From The PNRA-CMG Pair Trade

My luck ran out on the PNRA-CMG pair trading today.  Not sure why such discrepancy in the price movement between the two today.  PNRA down 4% while CMG only down 2%.  You can guess which one I am short and which one I am long!  May be it has something to do with the options expiration tomorrow?  Just in case it's the case, I am going to hold both positions till next week.  Regardless, the lesson is that nothing is safe from disaster, and you have to be prepared.  Second lesson:  I'm still cursed and my trades are still jinxed!

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