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Potential Lumber Liquidators (LL) Trade Has 7.80% Downside Protection

Nov 07, 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 $30.72 on Nov 6, 2017. For more conservative investors, look at a covered call using the Jan 19, 2018 $30 call for a net debit of about $28.33. This trade will return 5.89% (29.47% annualized, for comparison purposes only) as long as the stock closes above $30 at expiration. Lumber Liquidators can fall 7.80% before causing a problem. For investors with a higher appetite for risk, consider a diagonal spread with a Jan 18, 2019 $13 call taking the place of the long stock position and the same short position in the Jan 19, 2018 $30 call. This trade only costs about $16.45 to get into and the rate of return increases to 3.34% (29.47% annualized, for comparison purposes only) but the downside protection falls to 4.16%.

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