Lululemon Athletica inc. (LULU) Bulls Place Winning Bets

Lululemon Athletica inc. is surging this morning on a well-received earnings report

Digital Content Group
Dec 11, 2014 at 10:51 AM
facebook X logo linkedin


Lululemon Athletica inc. (NASDAQ:LULU) has rebounded from a pre-market, post-earnings sell-off, and is now nearly 10% higher at $51.30. Yesterday, traders were busy in the retailer's options pits, as volume surged to almost five times the norm. Plus, activity ramped up on short-term strikes, based on the stock's 30-day at-the-money implied volatility, which rose 4.7% to 56.8%.

Digging deeper, it appears speculators bought to open the weekly 12/12 50-strike call, which was the most active LULU option. These traders were angling for the shares to topple the half-century mark by tomorrow's close, when the weekly series expires. Their bets look to have paid off, with the equity now sitting atop the round-number $50 level -- and the current bid price of the calls outstrips what traders paid, on average, yesterday -- thanks to this morning's third-quarter earnings beat.

Wednesday's option bulls aren't the only ones celebrating, as data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) reveals a pronounced bias toward call buying in recent months. Specifically, Lululemon Athletica inc.'s (NASDAQ:LULU) 50-day call/put volume ratio of 2.79 across these three exchanges ranks in the 91st percentile of its annual range.

 

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