Trading Outperformance

In our latest video, I go through the concept of outperformance of one security versus another. Specifically, I look at $AAPL versus &AMZN.  You can look at the relative performance of those two stocks on a dollar-neutral basis here.  

 

If you think one stock will perform better relative to another stock (or an ETF), try trading a dollar-neutral spread to capture that exact performance metric.  Each time you think about entering a long trade in one stock, think about what your long stock will outperform.  Is it cash?  Or is it the broader market, a sector ETF, or another stock in a similar (or different) industry?  No matter what it is, you can use a $spread to implement your views. We have even created a series of videos to help you achieve your objectives.

 

Happy Trading!

 

 

Written and produced by Jennifer Galperin.  Follow me on Twitter and StockTwits.