http://finance.yahoo.com/news/lumber-liquidators-reports-4q-loss-111137167.html http://www.marketwatch.com/story/lu...flooring-hit-sales-2016-02-29?dist=beforebell http://www.msn.com/en-us/money/tops...-ll-plunges-on-cdcs-cancer-concern/ar-BBpTjfC http://finance.yahoo.com/q/is?s=LL http://stockcharts.com/h-sc/ui?s=ll Trade: With LL at 10.20 Aug 15/20 bear call spread for a net credit of $70 (bid/ask = .25/1.15) Yield = 70/430 = 16.3% in 172 days or 34% annualized Prob = 78% Expectation = .78(70) - .12(430) - .10(215) = 54.6 - 51.6 - 21.5 = -18.5 Price ............Profit / Loss........... ROM % 8.00.................... 70.00.............. 16.30% 11.00.................. 70.00.............. 16.30% 14.50.................. 70.00.............. 16.30% 15.00.................. 70.00.............. 16.30% 15.70.................... 0.00............... 0.00% 18.27............... (256.60)........... -51.32% 20.00............... (430.00)........... -83.70% 21.63............... (430.00)........... -83.70% 25.00............... (430.00)........... -83.70% http://finance.yahoo.com/q?s=ll&ql=1 There's a lot of pre-market interest in this stock which makes this a very dynamic situation. I will update after the open...please don't post here until after that.
$70 filled. (it pays to wait) Avg fill = 64.3 Yield = 64.30/435.7 = 14.8% in 172 days or 31.3% annualized http://stockcharts.com/h-sc/ui?s=ll