Market Overview

Why Hasbro Is Toying With Barbie

Why Hasbro Is Toying With Barbie
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Last year, one of our favorite pair trades posted on our Blog was the Long Hasbro, Inc. (NASDAQ: HAS) and Short Mattel, Inc. (NASDAQ: 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 percent -- not bad for a hedged position. If you think about it, annualized that is an almost 40 percent gain! At this point in time, this spread trade is still actionable.
Take a look at the updated chart 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.

John Butcofski & Kimberly Swartz
Captain John Charts
Stock chart: 
Stock chart

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