Stock / Symbol: [private_monthly]LuLuLemon Athlettica / LULU[/private_monthly]
Price at trade post: $86.93
Option Strategy: put spread
Reasoning: The company has been one of the hottest retail stocks in the market. Over the past week, there has been institutional selling, signaling (temporary) rotation out of the name, which has mirrored retailers as a group. We think that [private_monthly]LULU[/private_monthly] still hasn't found support, and we are going to take advantage of this pullback. We will likely close this trade prior to their earnings announcement set for Jun 10th in the pre-market hours.
Max Risk: $160
Max Reward: $340 or 112% by Jun 17th
Profit Range: $0 - $83.30
Max Profit at: $0 - $80
Trade Details:
[private_monthly]
Price
Cost
BTO 1 LULU Jun11 85 Put
STO -1 LULU Jun11 80 Put
for a net debit of $1.60 per contract
Requirements:
Cost/Proceeds $160.00
Option Requirement $0.00
Total Requirements $160.00
Estimated Commission $12.95
[/private_monthly]
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