Lululemon Athletica inc. Calls Active Amid Stock's New High

Lululemon Athletica inc. (LULU) call buying picks up

Feb 19, 2015 at 3:43 PM
facebook twitter linkedin


It's been a wild year so far for Lululemon Athletica inc. (NASDAQ:LULU), with the company parting ways with founder and board member Chip Wilson, as well as announcing plans to open stores in Middle Eastern countries such as Qatar, Kuwait, and the United Arab Emirates. Furthermore, the stock is up 20% year-to-date and notched a fresh annual high of $67.90 this afternoon. Not surprisingly, call buying activity in the options pits is increasing at a steady clip.

Specifically, LULU calls are more active than puts by a roughly 3-to-1 margin today, and are running at about 1.6 times the average intraday rate. The most popular strike is the February 68 call, which is more than doubling the next most popular option (the March 70 call) in volume, driven by apparent buy-to-open activity. By purchasing this call, traders expect the security to finish north of $68 by Friday's close, when the contracts expire.

Looking back over the past two weeks, however, put buying has actually been more popular than usual on Lululemon Athletica inc. (NASDAQ:LULU). At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 10-day put/call volume ratio of 0.59 ranks higher than 75% of all similar readings taken over the past year. At last check, LULU is fractionally higher at $66.90.

Daily Chart of LULU Since November 2014
 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1