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Potential Lumber Liquidators (LL) Trade Has 13.63% Downside Protection

Mar 17, 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 $19.06 on Mar 16, 2017. For more conservative investors, look at a covered call using the Aug 18, 2017 $18 call for a net debit of about $16.46. This trade will return 9.28% (22.01% annualized, for comparison purposes only) as long as the stock closes above $18 at expiration. Lumber Liquidators can fall 13.63% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 19, 2018 $13 call taking the place of the long stock position and the same short position in the Aug 18, 2017 $18 call. This trade only costs about $4.09 to get into and the rate of return increases to 21.95% (22.01% annualized, for comparison purposes only) but the downside protection falls to 10.33%.

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