SM Energy Co. just had its dividend calls yesterday, in line with the street expectations. The stock has been in a bearish ride since last december, and we currently see a pullback which leads to a pretty nice short set up. Right now, the 24 ressistance is the entrance point for this trade. We are expecting that SM resumes its bearish trends, and our first target...
Buy: Dec '16 $30.00 CALL Sell: Dec '16 $40.00 CALL Initial outlay: $305 (net debit) Maximum risk: $305 at a price of $30 at expiry Maximum return: $695 at a price of $40 at expiry BE at expiry: $33.05
SM recently failed on this breakout attempt, but hasn't crossed back under yet. looking to see if this can bounce up and continue tomorrow following this little action today.
Strong run off the February lows for SM Energy (SM).
Double bottom formed with price closing above its 3 month high of 15.87 all on strong volume. All oscillators look green now looking for a long bias trade setup.