“Ian, I did take a hit on the Lumber trade. But I like the idea. And I see that the stock is moving aggressively higher again. How would you trade it now? Other than this trade, I have done well overall. Thanks for your hard work,” wrote John C.
Thanks for the kind words, John.
The day after we exited under $30, the stock began to rocket well off its lows for the reasons we stated. There are no victims being reported. And a growing number of big investors are questioning the methodology used with the 60 Minutes report.
Better yet, the CEO of Chapman Capital just took out a large long position with call options in the stock.
This attack on the stock was nothing more than shoddy work by shoddy short sellers. I still strongly believe this stock could refill that bearish gap at $47.50. This story has gotten way out of hand on no real substantial news, in my opinion.
Unfortunately, the bid-ask spread on most of the options makes it impossible to buy at the moment. For that reason, consider just buying the underlying LL stock up to $35.
Have a -30% stop loss on the stock.
Ian L. Cooper
Forgotten Profits