We have described in previous posts how to trade pairs. Today, we went short CHI and long CHY. Both are convertible bond closed-end funds run by Calamos. CHY is trading at a discount of about 7.3% and CHI is trading at a discount of about 1.4%. The difference is about 5.9% and the average difference (looking at monthly closes) over the last 2 years and a few months is about 3.3%. We entered our particular trade at a difference of 6.3%. We will aim to close the trade when the gap narrows.<\/p>\n
See previous posts on pairs trading:<\/p>\n
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https:\/\/envisionco.net\/?m=201212<\/a><\/p>\n and<\/p>\n https:\/\/envisionco.net\/?m=201302<\/a><\/p>\n Warning: These are not guaranteed profitable trades. Please consult an investment advisory and understand the risks of these trades.<\/p>\n","protected":false},"excerpt":{"rendered":" We have described in previous posts how to trade pairs. Today, we went short CHI and long CHY. Both are convertible bond closed-end funds run by Calamos. CHY is trading at a discount of about 7.3% and CHI is trading … Continue reading