LD Lossdog Research
symbol

SMH

3 matching records.

Trade idea

SMH call spread

The speaker suggests selling a call spread on SMH, which has shown hyperbolic price movements. The expected move is significantly higher than the current price, and the options have a high IVR. The trade offers a substantial pop with a favorable risk-reward ratio, making it an attractive opportunity for shorting a hyperbolic asset.

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Strategycall spread
Assetstock
ExpirationJuly
Time horizonShort-term
Entry / triggerStock has been hyperbolic and is trading above the expected move
Target / exitUpwards of $30, possibly closer to $35
Invalidation / stopIf the stock moves significantly against the trade
SpeakerUnknown
Structure / legs
  • July 725 call
  • July 730 call
Risks
  • Large potential losses if the stock moves against the trade
  • Illiquidity of options
  • Inaccurate prediction of price movement
shortEquityshortcall spreadSMHshort-term
high confidenceVerify in video at 20:32 ↗
Trade idea

SMH broken wing butterfly

The speaker is considering a broken wing butterfly trade on SMH, which is at its highs. The trade involves buying the 700, 710, and 730 strikes for a credit. The speaker notes that the trade has a high probability of profit (87%) and a high implied volatility ratio (IVR) of 93 due to semiconductor stocks. However, the speaker acknowledges that the trade has a high risk-reward ratio, with a potential risk of $930 and a potential reward of $1070. The speaker is cautious about entering the trade due to the stock's current position and the potential for a pullback.

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Strategybroken wing butterfly
Assetstock
ExpirationJuly
Time horizonshort-term
Entry / triggerstock at its highs
Target / exitcredit for a few pennies more than the initial trade
Invalidation / stopif the stock pulls back significantly
SpeakerSpeaker
Structure / legs
  • 700
  • 710
  • 730
Risks
  • The stock could pull back significantly, reducing the trade's profitability.
  • The trade has a high risk-reward ratio, which could lead to significant losses if the stock moves against the trade.
shortEquityshortBroken Wing ButterflySMHshort-term
medium confidenceVerify in video at 19:26 ↗
Q&A

What is the current price of SMH?

The current price of SMH is $70, with a price increase of 76 cents and a price decrease of 59 cents.

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Actionable takeawayThe price of SMH is currently $70, with recent fluctuations of 76 cents up and 59 cents down.
SMHstock price
high confidenceVerify in video at 19:34 ↗