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Potential Lumber Liquidators (LL) Trade Targets 5.42% Return

Dec 05, 2017 ( via COMTEX) --

After Dec 4, 2017aEUR(TM)s trading in Lumber Liquidators (<a href="">LL</a>)'s option trade-picking algorithms uncovered a trade that offers a 5.42% or 27.10% (for comparison purposes only), while providing 9.53% downside protection. The trade is a Feb 16, 2018 covered call at the $28 level for a net debit of about $26.55. The net debit is also the breakeven point for this trade. For a higher return, consider buying a longer-term call option, like the Jan 18, 2019 at the $13 level. By buying the call for $17.19 instead of paying about $29.36 for the stock, the assigned return rate for this alternate trade is 4.16%, but the stock has to finish above $27.39 when the sold call expires for this trade to be profitable. Technical indicators for the stock have been bearish and support and resistance have been in the area of $28.03 and $30.15, respectively.

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