ATP Oil & Gas Pref Shares fka ATPGQ

[eddy2]

Great abitrage the other day with ATPAQ and ATPGQ. You have to like a no risk play when it comes your way.


The way it works is you short the higher of the two and go long on the other to capitalize on the spread. Shorting in this case means selling the stock short and going long on the other. Long is the writing of a put on one and taking that call with the other in other wise your buying your own put that you wrote this puts downward pressure on the stock that you have shorted by selling and going long on the other.

It is risky but if you can take a good spread for the risk she can pay off the down side is if the thing folds before you execute the trade the second date I like to call it on the derivative then you out of luck not something I like to do on stocks like this unless you see a good rise that will bring in more interested parties to play


Good luck in the new years and hope you trades are profitable Derivatives can often become a good crystal ball as to were the stock is going in the future.