Lululemon Stock Gaps Lower on Margin Update

Higher costs and weaker consumer spending are weighing on LULU

Digital Content Manager
Jan 9, 2023 at 9:43 AM
facebook X logo linkedin


Lululemon Athletica Inc (NASDAQ:LULU) is down 10.1% at $295.89 at last check, after the apparel retailer noted it expects its fourth-quarter margins to decline, and tightened its quarterly earnings outlook amid higher costs and weaker consumer spending due to high inflation.

Today's bear gap has the shares trading at their lowest level since late October, while also breaching a floor at the $305 level, which had contained the security's December pullback. Longer term, Lululemon Athletica stock has shed more than 10% in the past 12 months.

The options pits lean bearish, per the equity's 50-day put/call volume ratio of 1.14 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands in the 86th percentile of its annual range. This suggests long puts have been getting picked up at a much quicker-than-usual clip during the last 10 weeks.

Now could be a good opportunity to bet on LULU's next move with options, as the security is sporting attractively priced premiums at the moment. This per its Schaeffer's Volatility Index (SVI) of 46%, which sits in the relatively low 33rd percentile of readings from the past year.

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI