Athlesiure stalwart Lululemon Athletica Inc. (NASDAQ:LULU) was originally most well-known for its women's yoga apparel, but has since expanded its brand as a broader lifestyle apparel retailer. The company operates internationally with over 460 stores across four continents, and in the summer its purchase of at-home fitness company Mirror signaled its larger ambitions.

As sweatpants replaced slacks amidst the global coronavirus pandemic, Lululemon stock has been able to tack on a cool 60% in 2020. This culminated in a Sept. 2 record high of $399.89, and although the shares cooled off in the ensuing months, support has emerged at their 120-day moving average.

Lululemon's quarterly report is due out on Thursday, Dec. 10 after the close. The company has outperformed expectations on three of its four most recent earnings reports. In the fourth quarter of 2019, LULU beat expectations by $0.03, reporting an earnings per share (EPS) of $0.96. In the first quarter of 2020, the company significantly increased its EPS for Lululemon stock up to $2.28. Lululemon beat expectations by a margin of $0.04 that quarter.

Then, LULU saw a drastic EPS decline in its report on the second quarter of 2020. Lululemon reported an EPS of $0.22, missing Wall Street's expectations by a margin of $0.01. In its most recent quarterly report, Lululemon stock bounced back and the company beat its earnings target by a margin of $0.19, or 35%. Lululemon reported an EPS of $0.74 instead of the anticipated EPS of $0.55. For its upcoming earnings report slated for Dec. 10, the company is expected to increase its EPS for Lululemon stock up to $0.86.

Lululemon is one of the few clothing retailers that managed to maintain strong revenue and bottom-line profit throughout the pandemic that has taken down quite a few of the company's competitors. Lululemon did see a drop in revenue and net income, but not nearly as much as other clothing-related businesses. This is likely the result of the company's strong online presence that allowed business-as-usual throughout the shutdowns. Despite Lululemon's various brick-and-mortar locations all over the world, the number of physical stores the company operates pales in comparison to some of its competitors like Nike (NKE). The diversification of the company's revenue channels has ultimately allowed Lululemon to minimize its expenses and maintain decent revenue from online sales.

Pre-pandemic, Lululemon had been already on a very steady path of revenue and net profit growth. However, as a downside to potential investors, Lululemon stock currently trades at a very high price-earnings ratio of 90.12, and its forward price-earnings ratio is only projected to come down to 57.80.

Lululemon's strong performance during the COVID-19 pandemic has caused investors to pile into Lululemon stock without LULU fully recovering. Consequently, Lululemon stock has priced-in about 2-3 years of future growth already. At its current steep price, investors should be cautious and standby for a better window of entry.

On Dec. 4, the U.S. took a major step forward in its path toward the federal decriminalization of marijuana. The MORE Act, which would remove marijuana from the list of scheduled substances and eliminate criminal penalties for the possession, manufacturing, and distribution of the substance, was passed by the House of Representatives. The bill still needs to pass through the Senate, but this recent news has reinvigorated investor interest in cannabis stocks.

We will be comparing two of the biggest cannabis stocks today: Canopy Growth Corporation (NASDAQ:CGC) and Cronos Group Inc. (NASDAQ:CRON). Out of the two, Canopy Growth gas a market cap $10.55 billion, more than triple that of CRON which is $3.05 billion.

Both cannabis stocks have seen modest gains in 2020; CGC is up 44% year-to-date, while CRON has tacked on 10%. They both boast huge quarterly gains of 98% and 69%, respectively, with support in place at their ascending 10-day moving averages. 

On the current year, Cronos Group has reported $100 million in net profits compared to Canopy Growth's net income of -$1.5 billion. However, Canopy Growth by far surpasses Cronos Group in terms of overall revenue. Canopy Growth has produced $477 million in the past twelve months, more than 10 times what Cronos Group's $37 million over the past twelve months.

Both companies carry very solid balance sheets. Canopy Growth has about $2 billion in cash and Cronos Group doesn’t lag too far behind with approximately $1.3 billion in cash. However, Cronos Group's figure is far more impressive due to the company’s significantly smaller size. Both Canopy Growth and Cronos Group solidly have more in cash and cash equivalents than each has in total debt.

It is still too early in the process to be able tell which company will win the majority of the market share, if any. However, at this time and with the rapid growth of the cannabis industry, it still seems there is plenty of room for growth for all major players for the foreseeable future. Cronos Group is currently at an earlier stage in developing its company, but it hasn't shown quite as impressive growth as Canopy Growth did in its earlier stages. At the moment, Canopy Growth stock is the safer bet due to its higher revenues and its majority market share. Don't count out Cronos Group yet, though.

Stocks were mixed bag to start the week yesterday. With further delays in coronavirus stimulus negotiations were reported in addition to the rapidly rising number of infections, concerns weighed heavily on investors. Elsewhere in the world (aka beyond Wall Street), cities across the United States are releasing stricter social distancing orders as hospitalizations continue to climb to unprecedented levels.

The Dow Jones Industrial Average (DJI - 30,069.79) lost 148.5 points on Monday. The S&P 500 Index (SPX - 3,691.96) fell 7.2 points yesterday while the Nasdaq Composite (IXIC - 12,519.95) was up 55.7 points. The Cboe Volatility Index (VIX - 20.79) fell 2.3% during yesterday's trading session.

Investors can expect productivity revisions, as well as unit labor costs data to be released today. There will also be a good amount of earnings calls for investors to unpack today.

For your convenience, we have rounded up the companies slated to release earnings today, December 8:

AutoZone, Inc. (NYSE:AZO -- $1,157.18) retails and distributes automotive replacement parts and accessories. AutoZone will report its first-quarter earnings of 2021 before the bell today.

Brown-Forman Corporation (NYSE:BF-B -- $80.39) manufactures, bottles, imports, exports, markets, and sells various alcoholic beverages. Brown-Forman will report its second-quarter earnings of 2021 before the bell today.

Cantel Medical Corporation (NYSE:CMD -- $61.60) provides infection prevention and control products and services for the healthcare market. Cantel Medical will report its first-quarter earnings of 2021 before the bell today.

Conn's, Inc. (NASDAQ:CONN -- $14.04) operates as a specialty retailer of durable consumer goods and related services. Conn's will report its third-quarter earnings of 2021 before the bell today.

G-III Apparel Group, Ltd. (NASDAQ:GIII -- $23.98) designs, sources, and markets women's and men's apparel. G-III Apparel will report its third-quarter earnings before the bell today.

H&R Block, Inc. (NYSE:HRB -- $17.70) provides assisted income tax return preparation, do-it-yourself (DIY) tax, and virtual tax preparation services and products. H&R Block will report its second-quarter earnings of 2021 before the bell today.

John Wiley & Sons, Inc. (NYSE:JW-A -- $36.57) operates as a research and learning company worldwide. John Wiley & Sons will report its second-quarter earnings of 2021 before the bell today.

Thor Industries, Inc. (NYSE:THO -- $98.47) designs, manufactures, and sells recreational vehicles (RVs), and related parts and accessories. Thor Industries will report its first-quarter earnings of 2021 before the bell today.

AeroVironment, Inc. (NASDAQ:AVAV -- $91.23) designs, develops, produces, supports, and operates a portfolio of products and services. AeroVironment will report its second-quarter earnings of 2021 after the market closes today.

Chewy, Inc. (NYSE:CHWY -- $74.78) engages in the pure-play e-commerce business. Chewy will report its third-quarter earnings after the market closes today.

GameStop, Corp. (NYSE:GME -- $16.35) operates as a multichannel video game, consumer electronics, and collectibles retailer. GameStop will report its first-quarter earnings of 2021 after the market closes today.

Guidewire Software, Inc. (NYSE:GWRE -- $125.47) provides software products for property and casualty insurers worldwide. Guidewire Software will report its first-quarter earnings of 2021 after the market closes today.

MongoDB, Inc. (NASDAQ:MDB -- $280.46) operates as a general-purpose database platform worldwide. MongoDB will report its third-quarter earnings after the market closes today.

Phreesia, Inc. (NYSE:PHR -- $49.01) provides an integrated SaaS-based software and payment platform for the healthcare industry. Phreesia will report its first-quarter earnings of 2021 after the market closes today.

Here is a quick recap of how Monday's earning calls played out:

JinkoSolar Holding Co., Ltd. (NYSE:JKS -- $61.40) engages in the design, development, production, and marketing of photovoltaic products. Earnings per share increased 23.26% year over year to $1.06, which beat the estimate of $0.85. Revenue of $1,291,000,000 higher by 23.30% year over year, which missed the estimate of $1,300,000,000. 

Casey's General Stores, Inc. (NASDAQ:CASY -- $191.56) operates convenience stores under the Casey's and Casey's General Store names. Earnings per share increased 35.75% year over year to $3.00, which beat the estimate of $2.80. Revenue of $2,216,000,000 declined by 10.93% from the same period last year, which beat the estimate of $2,210,000,000.

Coupa Software, Inc. (NASDAQ:COUP -- $318.15) provides cloud-based business spend management platform. Earnings per share were down 10.00% over the past year to $0.18, which beat the estimate of $0.03. Revenue of $132,964,000 rose by 30.63% from the same period last year, which beat the estimate of $124,010,000. 

HealthEquity, Inc. (NASDAQ:HQY -- $70.60) provides technology-enabled services platforms to consumers and employers in the United States. Earnings per share decreased 12.77% year over year to $0.41, which beat the estimate of $0.36. Revenue of $179,351,000 up by 14.15% from the same period last year, which beat the estimate of $176,780,000.

Smartsheet, Inc. (NYSE:SMAR -- $61.56) provides cloud-based platform for execution of work. Earnings per share rose 20.00% year over year to ($0.12), which beat the estimate of ($0.21). Revenue of $98,933,000 up by 38.32% year over year, which beat the estimate of $94,590,000.

Stitch Fix, Inc. (NASDAQ:SFIX -- $35.56) sells a range of apparel, shoes, and accessories. Earnings per share rose 0.00% year over year to $0.09, which beat the estimate of ($0.20). Revenue of $490,423,000 rose by 10.25% from the same period last year, which beat the estimate of $481,170,000.

Toll Brothers, Inc. (NYSE:TOL -- $47.90) designs, builds, markets, sells, and arranges finance for luxury detached and attached homes. Earnings per share increased 9.93% year over year to $1.55, which beat the estimate of $1.23. Revenue of $2,546,000,000 higher by 7.02% year over year, which beat the estimate of $2,100,000,000.

Looking ahead to tomorrow, investor attention will shift to jobs openings and wholesale inventories data. All economic dates listed here are tentative and subject to change.

Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. As such, Schaeffer's are starting a new educational series titled Optimizing Your Options Strategies. The beauty of options trading is that there are options strategies for every market environment. In this series, we will cover all available options strategies for an educated trader to consider when identifying trading opportunities.

In this article, we will be talking about one of the most popular options strategies known as Covered Calls.  A covered call is a strategy involving trades in both the underlying stock and a call option. The trader buys, or owns, the underlying stock. The trader will then sell call options (the right to purchase the underlying asset or shares of it) and then wait for the options contract to be exercised, or to expire. If an options contract is exercised when trading covered calls, the trader will sell the option at the strike price, and if the option contract is not exercised, the trader will keep the stock.

When implementing the covered call strategy, the call that is sold is typically out-of-the-money (OTM), which means that the option strike price is higher than the current market price of the underlying stock. This allows for profit to be made on both the call option writing and the stock if the stock price stays below the call option’s strike price.

On the contrary, a covered call can also be executed when a trader believes that a company's stock price will go down and still wants to maintain his position in the underlying stock through the sale of an in-the-money (ITM) call option, where the strike price of the call option is below the current market price of the underlying asset. When selling an ITM option, a trader will generally receive a higher premium, but that comes with a risk that if the price of the underlying asset doesn’t fall below the ITM strike price, the buyer of the call option can exercise their call option, and then the call buyer will be entitled to the stock position.

The covered call options strategy can be a great tool for long-term investors and traders, but it is rarely used by day traders because of its margin requirements. The risk of a covered call comes from holding the underlying asset which could drop in price. The maximum loss will occur if the stock itself goes down to zero.

Maximum Loss = Stock Entry Price – Option Premium Received

For example, if a trader buys a stock at $5 and receives a $0.10 option premium on his sold call, his maximum loss is $4.90 per share. The money from his option premium reduces his maximum loss because he owns the underlying stock. The option premium income comes at a cost, though, as it also limits a trader's potential upside on the stock. One could only profit on a covered call strategy if the stock is above the strike price of the options contracts that were sold. The maximum profit is limited in this strategy, and can be calculated by using the formula:

Maximum Profit = (Strike Price – Stock Entry Price) + Option Premium Received

For example, if a trader buys a stock at $5 and receives a $0.10 option premium from selling a $5.50 strike price call, then he maintains his stock position as long as the stock price stays below $5.50 at expiration. If the stock price moves to $6, he can only profit up to $5.50, so his profit is $5.50 - $5.00 + $0.10 = $0.60. If one were to sell an ITM call option, the underlying stock price will need to fall substantially for one to even hold on to his stocks. If that occurs, the trader will likely be facing a big loss on his stock position. However, this loss would be offset with the premium received from selling the call option.

The primary objective behind the covered call strategy is to collect the call option premium by selling calls against the stock that are already in a trader's portfolio. Choosing covered calls out of all available options strategies can be a great way to earn income on existing stocks in one's portfolio. Assuming that the stock does not move above the strike price of the call option, the trader gets to collect the premium and maintain his current stock position. Traders should also factor in the commissions when trading the covered call options strategies. Consider a brokerage that offers commission-free trading.

The shares of Ford Motor Company (NYSE:F) are down 1.7% at $9.19 during today's trading, following a Friday announcement that the firm is pushing back the launch of its Bronco SUV until summer 2021. Ford cited issues linked to the pandemic, and problems with suppliers. The new SUV was originally set to launch during spring, and already has over 90,000 preorders. 

Today's dip marks a pullback from the equity's recent 11-month peak, which ran into trouble just below the $10 level before hitting a fresh annual high. This region has proved resistant in the past, with several rally attempts back in late 2019 and early 2020 capped by this ceiling. In the past nine months, though, F has managed a more than 55% pop. 

Analysts remain hesitant, however. Just three of the 11 in coverage call Ford stock a "strong buy," compared to eight "hold" ratings. What's more, the 12-month consensus price target of $9.04 sits at a slight discount to current levels. 

Despite today's negative price action, calls are still outnumbering puts, and being traded at a slightly quicker clip than usual. In fact, 33,000 calls have crossed the tape so far, which is 1.2 times the intraday average. Most popular is the weekly 12/11 9.50-strike call, followed by the January 2021 10-strike call. 

This penchant for calls has been the norm. In the past 10 days, 8.1 calls have been picked up for every put at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all other readings from the past year, too, suggesting these bullish bets haven't been more popular in the last 12 months.