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Potential Lumber Liquidators (LL) Trade Could Hit 12.35% Return

May 18, 2017 ( via COMTEX) --

The patented option-trade picking algorithms that power's Artificial Intelligence Center are highlighting two trades on Lumber Liquidators (<a href="">LL</a>) today after it closed at $25.55 on May 17, 2017. For more conservative investors, look at a covered call using the Nov 17, 2017 $24 call for a net debit of about $21.35. This trade will return 12.35% (24.65% annualized, for comparison purposes only) as long as the stock closes above $24 at expiration. Lumber LiquidatorsAcan fall 16.43% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 19, 2018 $16 call taking the place of the long stock position and the same short position in the Nov 17, 2017 $24 call. This trade only costs about $6.14 to get into and the rate of return increases to 30.08% (24.65% annualized, for comparison purposes only) but the downside protection falls to 13.34%.

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