Zeev's Turnips Patch-No Politics (ZEEV)

[schloss_1]

Babylon-

A better play might be to take a long position in the leader in a field (like HD) and short the overvalued second fiddle in the same group (like LOW). Over time, although it appears at first blush that your position is 100% neutral, the industry leader (HD) will increase in value, while the wannabe (LOW) will decrease in value. This straddle will protect you very nicely from a major up or down move in the market while almost insuring you of a nice return. (Look at the graphs of the two stock and you will see HD gaining strength and LOW backing off of it's all-time high of 49.99.)

Hope this helps,
schloss_1