Lululemon (LULU) – Add Zen to your Portfolio – Dec 9th, 2019
Bullish – LULU $229.38 – Consumer Discretionary
The S&P 500 (SPY) has resumed a major push to the upside after a brief consolidation. We expect this lower interest environment and a determined China to seek a trade deal, supportive of another wave higher. We are taking a new bullish stance on the markets while positioning for brief periods of consolidation and pullbacks.
LULU Trade Idea:
On CNBC’s OptionsAction show on Friday, Guy Adami suggested that Lululemon’s growth is set up for a continuation higher on earnings. After a 90% gain on the year, LULU is set to report earnings on Wednesday and has seen substantial growth in emerging markets and improving margins. Michael Khouw, expecting LULU to rally on earnings, suggesting buying a Jan/Dec 150 Call Calendar @ $1.65 Debit. As of Friday’s close, these calls were trading at $1.85 Debit. OptionsPlay suggests managing risks by cutting losses if the price of the option falls below $0.92.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: LULU OptionsAction Trade
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