Suz Smith

Suz Smith
Contributor since: 2012
Company: McElhenny Sheffield Capital Management
Thanks Danonc! I'm going to be more active in my articles. I appreciate you following along. I also do a free blog: http://seekingalpha.co...
Love your handle there Smokey :0
That is an interesting idea - something I would consider if I weren't already long common. I love it when people take an idea and make it their own. Good job!! Thanks for reading :)
Hi Mikier,
In my opinion the earnings reports have been better than most expected - X just reported but the markets were not open for me to judge the reaction. Thanks for reading!!
Hi Rip2451, you are correct it is a MLP and that there are special tax situations - "trader accountants" are well versed in this and can help you at the end of the year if you have questions as to how to handle the gains. Thanks for reading!
I keep AAPL spreads in my portfolio in many way shapes and forms - it is a staple trade for me so the short answer is yes, I will have some sort of AAPL trade going into the announcement. I do think AAPL will be a sell the news event, so my trade will have that factored in.
Seth, I have exited my entire AAPL directional position - I had the Jan 2013 $600 calls. I hold a decent size position of bull put spreads that start at $600 & below. If we get a decent correction, I would look to reestablish a position, this time using the Jan 2013 $650 calls.
From your mouth to his ears LOL! Thanks for reading!
Great additions to the article! I do condors on XOM as a portfolio staple. Range trading stocks are great for condors. Thanks for reading!
Thanks friend - hopefully this article will help others to find their way. Thanks for reading!
Hi Yayo, thank you so much for the kind words! Make sure to follow on twitter @SuzyQ76022
Book value is $7.94 - generally there is a premium involved to get the deal done. The point of the article is that the stock has a setup, and if I wind up with a stock only position, in the event of a takeover I believe it would bring more than my base price on the stock.
Hi Jaques, you can find me here:
http://bit.ly/Pog9bN
I do an instablog as well as premium articles - all off of my home page. Come on over and join the gang!!
Hi David,
I chose it for a couple of reasons. First, I want to own MMR at $9, therefore I need to have the available capital to cover it if assigned.
Second, unless you have a super great deal on commissions, they will eat up your profits - remember most folks have to pay a ticket fee plus a per contract fee. A spread would double those costs if you had to exit.
You've asked the golden ticket question. I have a "stable" of stocks as my go to source, and I also monitor the biggest gainers/losers on the day to see if I can exploit extreme weakness or strength. I look at about 100 charts a day/night to see what is at support, what is at resistance etc. As a for instance, AAPL printed a gravestone doji on the day which could represent the reversal candle. As far as the November AAPL goes, I go as low as possible to get a decent premium for the least risk possible. I'm down in the 560/555 range for .95...here's why. Look at the chart of PCLN on earnings and the day after. That could just as easily be AAPL. Just sayin', don't let juicy premiums lull you into feeling "safe". Your job is to make the most money you can for the least risk available.
Mark, I sent you an email.
Thank you Baller. I am also a heavy options trader and glad you found value in the article. Thanks for reading!
While that is a viable idea, it ties up a lot of capital for a few months. You have to consider opportunity cost when evaluating trading ideas, and to do this in any quantity would eat up a ton of buying power.
Hi Sanford,
Straddles and or strangles would are also great ways to take advantage of a larger move...I just want to see a tad bit more weakness in the overall markets before adding to my positions. I don't want to be the early bird to that party :)
Hi Russell,
I'm going out on my own limb here and the markets will do what they will - but I am expecting a pullback to happen around August 20th. This is based off of my Fibonacci time study.
Hi TwistTie, you must have options approval of at least a tier 2 in your account. It requires a form submitted to your broker, and you are able to fax it to them. It generally takes 24 hours for approval. As a word of advice, I'd avoid using the word novice when submitting the application :)
Margin: Your margin is the spread less the credit - this is a $5 spread, less the .75 credit so you would be tying up $425 per each contract you take in the spread. If you did a 5 lot it would tie up $21.25.
I am EXTREMELY glad you understand the trade - it is my style to explain things in "normal people" terms LOL!
Thanks for reaching out!!
Hi Sanford, I have two methods of early exit. If I get 80% of the credit and the market looks iffy, I will close down the position. Other than that, if the spread goes to .05, even the week of expiry, I will close. Thanks for your kind words and thanks for reading!
Hi Alexco12, while I hold VZ from much lower levels, the idea presented is counting on that double top. For this trade presentation it is a positive. Thanks for your great comments - always nice to see different views so one can make a well informed decision. Thanks for reading!
Hi There,
Great comments! I do have the advantage of being long the stock from much, much lower as it was originally purchased as a dividend strategy. In regards to the double top, I want this to happen again as that event is what is giving me a little extra return. Do I think we will drift back to 2007 levels? Well, anything is possible, but as Q2 showed, there's been a stealth move into "safe" investment vehicles, which includes dividend strategies. In order for the drift back we would have to first break a 9 month support level that is the $37.50 area. In that instance I would be buying common stock hand over fist. I think it will be months before we see any type of resolution out of this current channel, therefore I don't mind owning the stock from the bottom of this channel. If entering via short put at the bottom of the channel, I would simply place a stop right underneath the low of that channel and immediately enter a conditional order which would liquidate the stock and buy to close the short call at market if it is violated.
As far as the volatility goes, when I say the volatility will spike on that event, it is in context of the historical volatility for VZ - its' specific behavior the past few times it tried to break over the resistance level is what formed those wicks, and those wicks ARE the volatility.
I appreciate your comments and insights into this trade idea. Thanks for reading!
Hi calledup&put down...just a fat finger mistake :) Thank you so much for reading!
For the rest of the gang - my favorite lurkers - I see you and appreciate you. I've rec'd many inquiries in regards to my Private Wealth Management practice - keep in mind you don't have to have a million dollar account to have an active manager with eyes on YOUR portfolio daily. Whether you have $125K or $500M, you will get a personalized investment strategy that adheres to your risk tolerance and growth expectations. We DO NOT simply put all of our clients into "buckets" as the "bucket" method does not take into consideration the client's personal preferences. I welcome the opportunity to show you our unique strategies. Interested parties please email me: Suz@MSCM.net.
Hi guys, thanks for catching my typo! I've submitted it for correction!! Thanks for reading :)
Hi JJ,
You are very kind, and I welcome new client inquiries!!
The point of the trade is that there are multiple outcomes. I want to own the stock for the dividend, and the hint of the M&A, however for the NEAR term I want to have downside protection. Options leak value quickly...therefore, sell options against the top of the channel and buy them to close at the bottom of the channel, if it all works correctly I've acquired a decent stock, captured a dividend income, captured a options income and then all that is left is the stock, which could run again. You only take the M&A off the table if you hold the options until maturity and let the stock get called away. Thanks for reading!