Lululemon Athletica Inc. LULU – Update
We signaled a range of calls in the LULU options chain in the wake of the company’s earnings beat yesterday morning, and we were met with some fantastic opportunities at huge single-session gains.
Every one of the five sets of contracts, the LULU Weekly $83-85 Calls, produced a shot at double-bag gains on the day, which were as follows:
$83 Calls – Range: 1.60-4.50 – Max Gain: 181%
$83.50 Calls – Range: 1.25-4.15 – Max Gain: 232%
$84 Calls – Range: 1.20-3.80– Max Gain: 217%
$84.50 Calls – Range: 1.00-2.90 – Max Gain: 190%
$85 Calls – Range: .82-3.24 – Max Gain: 295%
With such solid moves in just one day, LULU doesn’t owe us anything, but we’re still going to roll up our potential strike range and monitor the Weekly $85-86 Calls* as we finish out this short trading week.
Fresh Options Idea:
Constellation Brands, Inc. STZ Weekly $222.50-230 Calls*
*Do NOT trade weekly calls on the last day of the week unless you are an expert level trader!
Elev8 Brands, Inc. VATE
As you can see from our commentary on the annotated chart below, we’re interested in the setup of the VATE chart at the moment. The stock just began to consolidate off of a sizable surge that had persisted for most of this month.
We’re going to put it on bottom watch, and look for an eventual rebound in the event it can maintain support at or above the .05-mark.
AYTU, AQMS, ESES, PTCT, CPRX, MARK, MYSZ. RAS