LUMN Squeeze: Can It Hit This Bullish Target?
Why It Matters
If LUMN reaches the projected $1,129 level, the outlined strategies could deliver outsized returns, making the setup a high‑reward opportunity for risk‑aware traders.
Key Takeaways
- •LUMN shows a bullish squeeze with expanding Bollinger Bands.
- •Weekly divergent bar targets $1,129 by next week’s expiration.
- •1050 strike call costs ~$0.37, offering favorable risk‑reward.
- •Alternative $9 call at $1.27 yields higher delta but higher cost.
- •Buying shares avoids theta decay and leverages true‑low upside potential.
Summary
Allison of Simpler Trading outlines a trade idea on Lumen Technologies (LUMN), focusing on a developing bullish squeeze and a potential price target near $1,129.
Technical analysis shows expanding Bollinger Bands and a weekly bullish divergent bar, suggesting momentum reset. The author highlights a 1050‑strike call priced around $0.37, which would be $0.79 in‑the‑money at the target, and a $9 call at $1.27 for higher delta exposure.
She references a prior true‑low rally where LUMN surged from roughly $350 to $1,150, using that historical move to justify buying shares now to avoid theta decay.
The recommendation balances low‑cost option plays with outright share purchases, offering traders a way to capture upside while managing risk, especially for those comfortable with the identified price corridor.
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