There is one week until the the end of the current L and L Energy trade. The trade is currently in orange status. It is below what the account paid but higher than the stop loss level. There has been conflicting high profile news on company. The account feels that the stock is primed for a move up due to both fundamental and technical reasons.
The LLEN stock is currently priced at $9.39. It has survived repeated attacks from Strategy Session on CNBC. It seems to have a solid base at $9.00. Red Chip lowered its price target to $17.00 from $19.00.
The Jan $12.50 call has become worthless. So the account has maximized its profit from the call.
The account recommends taking a look at the news for LLEN through Yahoo! Finance. Reports from CNBC, Thestreet.com, SeekingAlpha, and Motley Fool were issued just in the last week.
Overall, if the stock does not hit the stop loss, the account will be looking to sell another call (either Feb or Mar) on LLEN to decrease both the cost basis and stop loss prices.
- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using its material.
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