Stock / Symbol: LuLuLemon Athlettica / LULU
Option Strategy: put spread
Price at trade entry: $87.75
Price at this post: $82.95
Reasoning: This put play has performed nicely but we do want to get out of the way before LULU reports earnings Friday morning. With the stock down 5.5%, our trade is currently up 52%. We're going to place a closing order which will give us a 55% pre-commission return if we get filled.
Trade Details:
STC 1 LULU Jun11 85 Put
BTC -1 LULU Jun11 80 Put
for a net credit of $2.45 per contract
Max Risk: $158
Max Reward: $340 or 112% by Jun 17th
Profit Range: $0 - $83.30
Max Profit at: $0 - $80
Realized Profit upon order fill: $87 or 55%
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