LITE

Lumentum Holdings Inc Overview: Lumentum Holdings Inc (LITE) is a large-cap growth stock in the Communications Equipment industry, receiving a high rating of 100% from Validea's Quantitative Momentum Investor model based on strong fundamentals and valuation.

Guru Strategy Performance: The stock's score indicates strong interest, as scores above 90% suggest significant potential according to the momentum model developed by Wesley Gray.

Wesley Gray's Background: Wesley Gray, founder of Alpha Architect, is an expert in quantitative investing and has authored notable books on momentum and value investing, holding a PhD from the University of Chicago.

Validea's Investment Research: Validea provides investment research based on strategies from renowned investors, offering stock analysis and model portfolios aimed at long-term market outperformance.

Top Performing Stocks: Ten large-cap stocks saw significant gains last week, with Globus Medical, Inc. leading at a 39.79% increase after strong Q3 results and raised guidance for FY2025.

Strong Earnings Reports: Companies like Sandisk Corporation, Lumentum Holdings Inc., and Datadog, Inc. also reported better-than-expected financial results, contributing to their respective stock price increases of 13.77%, 15.30%, and 16.91%.

Guidance Upgrades: Several companies, including Expedia Group, Inc. and Penumbra, Inc., raised their fiscal year 2025 guidance following positive earnings reports, resulting in stock gains of 18.14% and 19.58%, respectively.

Overall Market Performance: Other notable performers included Teva Pharmaceutical Industries Limited and Madrigal Pharmaceuticals, Inc., both of which reported strong earnings and raised their guidance, contributing to their stock price increases of 15.13% and 19.90%.

Put Contract Overview: The $240.00 put contract has a bid of $21.10, allowing investors to buy LITE shares at a cost basis of $218.90, which is attractive compared to the current price of $242.51. There is a 60% chance the contract may expire worthless, potentially yielding an 8.79% return on cash commitment.

Call Contract Overview: The $250.00 call contract has a bid of $25.50, offering a total return of 13.60% if the stock is called away at expiration. The contract is out-of-the-money by approximately 3%, with a 45% chance of expiring worthless, which could yield a 10.52% additional return.

Volatility Insights: The implied volatility for the put contract is 75% and for the call contract is 76%, while the actual trailing twelve-month volatility is calculated at 72%.

YieldBoost Concept: The potential returns from both the put and call contracts are referred to as "YieldBoost," with the put offering a 64.18% annualized return and the call providing a 76.76% annualized return if they expire worthless.