February, 2019 Option recommendation: our only recommendation that lost money in 2019 (-4.29%)

This recommendation does not include the in-depth analysis of the underlying equity that gave rise to this options recommendation. Subscribers are spared the detail of the equity analysis as only necessary information about the option is provided.

Company name: L Brands Inc.

Company background

Option symbol:    LB210115C00015000

Expiration date: 15th January, 2021

Stock price at recommendation: $27.65.

Strike price at recommendation: $15

Options premium at recommendation: $14

Expectation

  1. We expect the price to rise by 30%-50% to $35.95-$41.48 for a total return of 50%-89% before the expiration date. This happened to be our only recommendation that lost money in 2019

NOTE

  1. When to sell is entirely up to you. However, while we believe that the stock has the potential to rise to the anticipated price, you don’t have to wait for the price to rise to the expected range before selling, especially if the price move early
  2. Except you have good reason, don’t panic if the price of the stock goes down. It’s often an opportunity to get the option at a cheaper price. As you can see, this is an option with extended timing. The timing was taken into consideration before recommendation. So, we have time to play with before expiration time.

 

OUTCOME

Date sold: 12th January, 2020

Price when sold: $28.4

Stock return: 2.71%

Option return: -4.29% 

Annualized return: -4.29%

The price of the stock decreased by -2.71% to $28.4 in 12 months, amounting to a nominal option return of -4.29% and an annualized returned of -4.29% respectively.

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