Historically, equity index futures behave similarly in terms of direction. However, there are times when E-Mini S&P, Nasdaq, Dow, and Russell deviate in terms of relative strength and weakness. In this segment, Pete examines two of the most popular equity pairs, /ES-/NQ and /ES - /YM.
From there, he walks through the pros and cons of setting up pairs trades in the following ways:
- futures vs. futures
- futures vs. options
- options vs. options
Based on recent price behavior and implied volatility, find out which method Pete chooses to approach a setup in these equity index pairs.