Market neutral trading strategies
So statistical arbitrage such as pairs trading is a market-neutral strategy. We make an assumption how stock prices should move relative to each other. Let’s consider two companies within the same industry: Pepsi (PEP) and Coca-Cola (KO). We can make an assumption that if these two stocks diverge, they should eventually re-converge. Setup and trading market neutral and non-directional option strategies. Deciding how aggress to sell option premium based on IV ranking indicators. Creating defined-risk and un-defined risk positions based on the type of account you're trading with. Skewing positions and creating unbalanced spreads when you have a directional assumption.