Last year one of our favorite pair trades that was posted on our Blog, was the Long Hasbro ($HAS) and Short Mattel $MAT and that was closed out with a very nice gain. Flash forward to April this year, in our article titled, "Monopoly 'HAS' A Get Out Of Jail Free Card"; we discussed that this Pair Trade idea had opened back up again after the two toy makers price action against each other revealed a Relative Strength breakout.
It's time to take a look again and give you an update on where this stands. Over the last couple of weeks, the trade is up almost 7%. Not bad for a hedged position; if you think about it, annualized that is an almost 40% gain! At this point in time, this spread trade is still actionable. Take a look at the updated chart below where you'll see two beautiful breakaway gap ups with some very nice MOMO and after a brief pullback, the Relative Strength is STILL climbing for Hasbro.
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