I have been day trading (scalping this spread) for the past few days. Everytime it goes close to about 20.00, I would initiate a short position. That is short 3 * $GMCR / Long 5 * $DMND. I would then cover below 15.00 giving us +5 pts profit per spread.
Overall the spread is in overbought territory as it is trading over +4 z-score above the 5 year average.
Stats and charts can be viewed here. Learn to daytrade spikes and gaps here.
Written by Aris David. Follow me on Twitter and StockTwits.
Source: Interactive Brokers