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Potential Lumber Liquidators (LL) Trade Has 10.52% Downside Protection

Oct 12, 2017 (Marketintelligencecenter.com via COMTEX) --

The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center Aare highlighting two trades on Lumber Liquidators (<a href="http://www.marketintelligencecenter.com/symbol/LL">LL</a>) today after it closed at $35.15 on Oct 11, 2017. For more conservative investors, look at a covered call using the Feb 16, 2018 $35 call for a net debit of about $31.45. This trade will return 11.25% (32.33% annualized, for comparison purposes only) as long as the stock closes above $35 at expiration. Lumber Liquidators can fall 10.52% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $15 call taking the place of the long stock position and the same short position in the Feb 16, 2018 $35 call. This trade only costs about $17.75 to get into and the rate of return increases to 12.67% (32.33% annualized, for comparison purposes only) but the downside protection falls to 6.85%.

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