Blue Nile Versus Computer Sciences Pair

Here is the spread we are discussing in the Forum. http://goo.gl/625zN

• @fledlingtrader thinks that if you sell that one you might have to sit on it for a while (long half life).
• @biggercapitalnw wanted to sell it but NILE borrow is tight. Half Life is right on the border for 2 years but within range for other time periods.
• I think it might be a very good sell at 3 zscore, but might need to be patient.

 The tightness in the borrow is the major factor. Still a good spread candidate for discussion.

Written by Michael Bigger. Follow me on Twitter and StockTwits.

 

 

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