LMND: A visit to the Dark Side
Updated
LMND used to be the belle of the ball back during the pandemic days. Now its just struggling to gain some momentum.
Over the past 2 weeks leading up to earnings on July 30th, LMND has had a nice run. Unfortunately gravity will pull this stock back to earth very shortly UNLESS earnings are so stellar that it finally breaks out of the horizontal channel that has entombed this stock for the better part of over a year.
Stochastic RSI has been pegged on the high side for a long time historically and I have to believe that this is either due to short sellers closing positions or bulls trying to build some pre earnings momentum....or both is happening because earnings are stellar.
I believe the insurance market is very competitive and despite the use of AI LMND has still not hit its stride, so while earnings might be decent, I don't think it warrants additional upside.
Taking a short position....looking for a retreat to fill a long exposed gap with a price target of $14.
Over the past 2 weeks leading up to earnings on July 30th, LMND has had a nice run. Unfortunately gravity will pull this stock back to earth very shortly UNLESS earnings are so stellar that it finally breaks out of the horizontal channel that has entombed this stock for the better part of over a year.
Stochastic RSI has been pegged on the high side for a long time historically and I have to believe that this is either due to short sellers closing positions or bulls trying to build some pre earnings momentum....or both is happening because earnings are stellar.
I believe the insurance market is very competitive and despite the use of AI LMND has still not hit its stride, so while earnings might be decent, I don't think it warrants additional upside.
Taking a short position....looking for a retreat to fill a long exposed gap with a price target of $14.
Trade active
Adding puts on this rise up...Trade closed: target reached
Well that was a precipitous slide if i have ever seen one.....closing position as its close to target and looking for other trades.....
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