It's rare for a gap to open between two nearly identical [platinum] ETFs/ETNs. But it still happens and it was tradeable too, I did. Visual evidence against efficient markets:


by Max Dama at 6:00 AM
Topic: ,

5 comments:

Anonymous said...

very cool max. Out of curio how did you find this, do you have code that always scans?

Also what trade do you apply, go long PTM and short PGM or something else?

January 19, 2010 12:35 PM  
Kou S said...

it looks very beautiful

January 19, 2010 11:19 PM  
Max Dama said...

Anon,

A friend emailed me about it as it was happening.

I shorted PGM and tried to go long PTM but my limit order wouldnt get filled because the spread was so wide, so I ended up longing SLV which is very liquid and looked like it moved very similarly. PGM was hard to borrow, it took me about 30min of repeatedly submitting the order to get it through.

Regards,
Max

January 20, 2010 5:19 AM  
Nik said...

hehe I posted that a while ago on NP:

http://www.nuclearphynance.com/Show%20Post.aspx?PostIDKey=136953

its easy to find such opportunities structurally. we have a couple of systems set in place for this purpose

January 20, 2010 7:43 AM  
chintan shah said...
This post has been removed by the author.
February 14, 2010 9:00 AM  

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