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Potential Lumber Liquidators (LL) Trade Could Hit 8.30% Return

Jan 12, 2018 ( via COMTEX) --

The patented option-trade picking algorithms that power's Artificial Intelligence Center Aare highlighting two trades on Lumber Liquidators (<a href="">LL</a>) today after it closed at $31.79 on Jan 11, 2018. For more conservative investors, look at a covered call using the Apr 20, 2018 $30 call for a net debit of about $27.70. This trade will return 8.30% (30.92% annualized, for comparison purposes only) as long as the stock closes above $30 at expiration. Lumber Liquidators can fall 12.89% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $3 call taking the place of the long stock position and the same short position in the Apr 20, 2018 $30 call. This trade only costs about $25.34 to get into and the rate of return increases to 6.50% (30.92% annualized, for comparison purposes only) but the downside protection falls to 10.84%.

(C) Copyright 2018, All rights reserved. ********************************************************************** As of Monday, 01-08-2018 23:59, the latest Comtex SmarTrend® Alert, an automated pattern recognition system,

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