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my amzn/ebay trade up 20.3%
so with some help from a few commentors i've figured out how to calculate the return on this paired trade. i sold $100k of ebay short and purchased the same amount of amazon long. while this was neutral in terms of capital used, it probably required around $100k of capital to create. therefore, i'm now up 11.3% on the amzn side and 9.3% on ebay short for a total gain of 20.4%. given that there was no timing catalyst for this trade, i am now tempted to just take the profit. you have to pay short term capital gains on short positions anyway.
June 27, 2006 | Permalink
Comments
nice call on Ebay - wow that looks ugly.
I think the next big selloff will be the last for ebay and would buy in the mid 20's
so book it - at least the ebay side
Posted by: howard lindzon | Jun 27, 2006 8:43:25 PM
totally agree
book your proft and come up with another trade for us!
Posted by: fred | Jul 3, 2006 1:18:15 PM



