Will Lululemon Stock Snap its Losing Streak?

LULU is headed for its eighth consecutive daily loss

Digital Content Manager
May 31, 2023 at 11:50 AM
facebook X logo linkedin

Athleisure retailer Lululemon Athletica Inc (NASDAQ:LULU) will join Macy's (M) in the earnings confessional tomorrow, announcing first-quarter results after the close. Last seen down 1.3% at $332.20, LULU is trading its lowest level since March and pacing for its eighth straight daily loss, as it pulls back from a May 8, one-year high $389.06. The shares are also slipping below long-term support at the 100-day moving average, but still sport a 13.4% year-over-year lead.

Options traders are already placing their bets, with 16,000 calls across the tape so far, which is six times the intraday average volume, compared to just 5,472 puts. The most active contract is the weekly 6/9 405-strike call, with new positions being opened there.

LULU 100 Day

This optimism has been the norm for quite some time. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the security's 50-day call/put volume ratio of 1.21 sits in the 92nd percentile of annual readings.

The equity has tended to move higher the day after its earnings report, if the last two years are any indication. In fact, Lululemon Athletica stock finished five of its last eight next-day sessions higher -- including a 12.7% pop back in March -- and averaged a move of 7.3%, regardless of direction. This time around, the options pits are pricing in a bigger-than-usual swing of 11.5%.


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