Lifetime Student Pockets 9900% (LRN, STRL)

All right.

Settle down.

The rally was fine while it lasted, but there’s nothing underpinning it.

What? You think something changed between last week and this?

Nope.

It’s all algorithmically generated hype.

No more.

But will it continue?

Maybe a little.

More likely, though, we’ll watch this thing turn over, spittle and dive like Murray Kadowski into his Six Banana Joy Split down at the Winnebago Sundae Emporium on Elm.

No time to lose!

Before we get to today’s action, though, we’re closing our STRL trade, opened on August 24^th in a letter called Who Profits From Hawaiian Wildfires?

There, we urged you to sell the STRL December 15^th 80/85 CALL spread for $1.80 and buy the STRL December 15^th 75/70 PUT spread for $2.20.  Total debit was $0.40.

And with STRL now trading at $, we’re recommending you close.

Sell the PUT spread for $1.90 (8.70/6.80) and leave the CALL spread to wither.

That gives you a $1.50 NET haul on just $0.40 spent.

And that’s 375%.

We’ll keep you apprised if action needs be taken on the short CALL side.

And now we turn to today’s bet on Stride Inc. (NYSE:LRN), providers of online educational packages and programs to middle and high school students.

After announcing earnings on October 24^th, shares in LRN bumped by a whopping 16%!

Was it merited?

Have a look at the fundamentals—

• P/E is 15.49 (not unreasonable).
• There’s no Dividend.
• Price to Book is 2.53.
• And latest Q/Q earnings were up 120.42%.

Altogether, a not unsightly picture.

Though this is something of a stain—

G-d bless His holy people, their land and Torah.

Many happy returns!

Matt McAbby

Follow @HughLOHaynew