How to bet on Hoka taking more gains from Nike using options

Pairs trading is a market-neutral strategy that involves buying one asset while shorting a related asset to profit from temporary pricing divergences. Typically, traders select two highly correlated assets — such as stocks, commodities, or currencies—that usually move together, like competing companies in the same industry (e.g., Ford and General Motors). The approach assumes that […]

Pairs trading explained and how to execute one with options

Pairs trading is a market-neutral trading strategy that involves simultaneously buying one asset, such as a stock, and selling another related asset. The idea is to take advantage of the relative price movements between two highly correlated assets, typically within the same sector or industry. These might be stocks, commodities, or even currencies. We will […]