I have received tons of attention on my pair strategy article and the position I entered in both Apple and Research In Motion. I went long Apple and short Research In Motion. The approach of matching a long position with a short position in two stocks of the same sector is called pair trading. This forms a hedge against the sector and the overall market that the two stocks are trading in. The hedge created is essentially a wager that you are placing on the two stocks; the stock you are long in against the stock you are short in. As its name implies, a pair trading approach is a double-pronged strategy, where 2 seemingly unrelated option or stock trades are opened at the same time. The method can give somewhat of a safety net to guard against an unanticipated move in a specific sector, while capitalizing on a specific equity's relative-strength backdrop. Fundamentally, a pair trader hedges his or her bets, opening positions in two interrelated equities or indexes and playing them against one another, choosing 1 call (bullish) position and 1 put (bearish) position. The pair of positions then together enables profitable returns among a number of outcomes. For example, I had a great view regarding Apple, but a pessimistic sentiment about Research In Motion. I went long on Apple at the same time as I shorted Research In Motion. I also had an uneasy feeling concerning the whole technology sector. Through taking a short position in Research In Motion, it allowed me to profit if a large sell off in tech took place. This profit on the short side would counteract my losses in Apple on the long side. Apple maintained its relative strength versus Research In Motion. The shares rallied and the short side of the trade (Research In Motion) dropped. Both sides of the paired trade entered positive territory. However let's say the whole technology sector suffers a large decline. The Research In Motion short is profitable, counter-acting the Apple long position which nets a loss. This is a superior outcome than if I merely went long on Apple. You are looking for the percentage change in the market between Apple and Research In Motion to move in Apple's favor no matter which direction Apple or Research In Motion head. On May 14, 2009, I went long Apple at 122, and short Research In Motion at 71. I closed out the pair on July 10th 2009 with Apple at 137 and Research In Motion at 66. I made 12% on my Apple long, and 7% on my Research In Motion short. So the total gain was 19%.