$LAZR Luminar Tech play

by Retirement Advisor | Oct 29, 2022 | Resources | 1 comment

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Luminar Technologies, Inc. makes sensor technologies and software for vehicles and is distributed internationally. Laser imaging, detection, ranging sensors, perception and autonomy software are becoming the norm in newer cars. LAZR stock has also made a few headlines this week as a couple of institutions have started or added to their positions, and most analysts have rated it a buy or hold. There’s some recent rallying in growth stocks in general. Overall, it seems to be a promising young company making in-demand LiDAR products.

**The doubts**: Big name analysts (like GS) have cut its target price. Northland downgraded it from outperform to market perform. Fed rate hike next week. Technically, it’s testing the lower EMAs and levels with some bullish patterns but who knows with the random gaps up and down these days. (source: [Marketbeat](https://www.marketbeat.com/instant-alerts/nasdaq-lazr-a-buy-or-sell-right-now-2022-10-2/))

Here’s my play to capture some upside but still protect myself against further dips:

Buy 1 $5.00 c, Buy 1 $7.50 c, Sell 4 $2.50 p (all expiring 1/19/24)
Max exposure: $999

This strategy can make up to 26% (20% annualized) and protect from a drop of up to 66% (cushion set way down to $2.50) through 1/19/24. If LAZR rallies sooner, I can exit early and most likely collect higher IRR.

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