Bullish – LULU $ 143.21 – Consumer Discretionary
The idea presented is the opinion of the Options Action staff and not a recommendation by OptionsPlay.
On Friday’s Options Action, the crew analyzed the performance of Lululemon stock. LULU posted strong growth in the digital space and continues to grow in China during a slowing economy. Coupled with improving operating margins provides an opportunity for expansion. Expecting LULU to trade higher on earnings, Michael Khouw suggests buying an April 135/145/155 Risk Reversal Call Spread a $0.20 Debit. As of Friday’s close, these options were trading at a $1.45 Credit.