LUMN Squeeze: Can It Hit This Bullish Target?

Simpler Trading
Simpler TradingMay 26, 2026

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.

Original Description

LUMN is setting up with a bullish technical structure that traders may want to keep on watch. In this video, Allison breaks down the current LUMN stock trade idea, including the recent squeeze setup, momentum reset, bullish trend, weekly squeeze, and a key upside target near $11.29.
She also walks through two ways traders could approach the setup: a shorter-term options idea using next week’s expiration, or a longer-term stock approach based on the recent True Low discount buy signal.
Chapters:
0:00 LUMN Trade Setup Overview
0:08 Squeeze Setup & Momentum Reset
0:20 Bullish Signal + Trend Structure
0:35 Weekly Target Near $11.29
0:58 Short-Term Options Trade Idea
1:33 Calls, Spreads & Risk/Reward
2:06 Longer-Term Share Strategy
This is a great watch for active traders looking for bullish stock setups, options trade ideas, squeeze plays, and technical analysis opportunities in the current market.
⚠️ Trading involves risk. This video is for educational purposes only and is not financial advice. Always manage your risk and trade according to your own plan.
May the trade be with you. ⚔️
Markets can shift fast, but Bruce Marshall has spent over a decade turning volatility into consistent options income using four adaptable strategies built for any market condition. Join this free session to see how you can stay prepared, protect your capital, and uncover opportunities no matter what the market throws your way. https://www.simplertrading.com/market-shock?utm_campaign=ois&utm_spec=2026-q2-bm&utm_medium=organic_social&utm_term=web-reg
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