Time to Take Profits on Short AAPL / Long GOOG Spread Trade

On October 3rd, when it stood at ~0.88, we noted the ratio of AAPL vs. GOOG still had ~20% in additional downside (i.e., GOOG had the same amount of out-performance left vs. AAPL) until it hit noteworthy support.

As of this post, the ratio now stands at 0.72, an 18% decline from our original post.

Given our ~20% profit target has nearly been hit and the ratio is at or nearing critical support, we’d suggest most of the juice in this spread trade has been squeezed.