Putting on an unequal pair-trade: PNC vs. KBE
2% LONG PNC @ $103.16
5% SHORT KBE @ $28.94
We want to add a bit more short exposure and Banks came up as a top short idea. But 5% is a bit too aggressive right now - our rule is to use 5% positions with ETFs.
So we put our favorite bank up against it as a long - PNC - one that Buffett added to recently and one of the best capitalized banks out there.
This unequal pair trade gives us 3% more of net short exposure and lets us get long a favorite bank in a least favorite sector.
2% LONG PNC @ $103.16
5% SHORT KBE @ $28.94
We want to add a bit more short exposure and Banks came up as a top short idea. But 5% is a bit too aggressive right now - our rule is to use 5% positions with ETFs.
So we put our favorite bank up against it as a long - PNC - one that Buffett added to recently and one of the best capitalized banks out there.
This unequal pair trade gives us 3% more of net short exposure and lets us get long a favorite bank in a least favorite sector.
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