On Jan 11th, I mentioned opening a pairs trade going long OII and short TRMA. Today I got stopped out of OII for a loss of slightly less than 9.5% and I covered my TRMA position for a little bit better than a 16% gain, so I made about 6.5% on this pairs trade. Not a home run, but better than a sharp stick in the eye.
More details on the Short Screen message boards.
Showing posts with label OII. Show all posts
Showing posts with label OII. Show all posts
Wednesday, January 20, 2010
Monday, January 11, 2010
Altman Z"-score pairs trade: Long OII; Short TRMA
As of Friday's close, Short Screen showed an Altman Z"-Score of -0.13 for Trico Marine Services (Nasdaq: TRMA) and an Altman Z"-score of 9 for Oceaneering International (NYSE: OII). Recall that Z"-scores below 1.1 indicate financial distress and risk of bankruptcy, and scores above 2.6 indicate financial strength (scores in between are in the gray zone). Today I shorted TRMA at $5.31 per share and bought an equivalent dollar amount of OII at $64.70 per share.
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