The Motley Fool Discussion Boards

Previous Page

CAPS / Lessons from CAPS

URL:  http://boards.fool.com/has-anybody-tried-going-long-on-caps-5s-and-28137354.aspx

Subject:  Re: Long CAPS 5 Short CAPS 1 Date:  12/2/2009  2:17 PM
Author:  Padavona Number:  160 of 182

Has anybody tried going long on CAPS 5's and short on CAPS 1's.

Not specifically. However I hedge invest constantly, as I really like the stable returns it produces. My goal is always to be market neutral.

One trade I have run for several months has been Long SPY, Short IAT. This is not a recommendation...I've had a winning 6 percentage point spread on it, but I need to determine if it is still a keeper.

I would need a lot more information on the historical performance of Cap selections per rating, to confidently use it as a base for a hedge strategy. Even if I had strong evidence the community could produce out-sized returns, I will still only use it as a screen rather than a mechanical strategy.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us