FIN 376: Trading Competition

Fall 2012

You may work in groups of 2.

This Tuesday and Thursday we’ll have a trading competition.  Start with your account set to $100 million.  You may trade anything available in your IB brokerage account.  You may make as many trades as you wish.  The only requirement is that you must complete the following trades.  If you don’t complete any one trade you cannot win the competition.

Note, you can hold positions from Tuesday to Thursday, and you may make trades between classes.  However, you must be closed out of all your positions by 1:30 Thursday.  Lastly, ‘trade’ of course can mean long or short.

The prize:  points toward your final exam
1st place:  +10
2nd place: +5
3rd place:  +3

List of Trades

Stock Trades:

1.  Trade 1,000 shares of RHT.  
2.  Trade 500 shares of APA.
3.  Trade 2000 shares of ACI.
4.   Trade 100 shares of BA.  
5.  Trade 1,000 shares of LMT.

Option Trades:

1.  Trade a call option on GOOG.
2.  Trade a put option on MSFT.

Options Spread Trades:

1.  Enter into a butterfly spread on some stock other than GOOG or MSFT.  
2.  Collar some stock which you haven’t otherwise traded.  

Futures Trades:

1.  Trade a gold futures (GC) contract.
2.  Trade a wheat futures (ZW) contract.
3.  Trade a natural gas futures (NG) contract.  

Futures Spread Trades:

1.  Trade a 3:2:1 Crack Spread
2.  Trade a 1:1:1 Crush Spread

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