NEW DIRECTIONAL PUT PLAYS
Lululemon Athletica - LULU - close: 57.78 change: -1.00
Stop Loss: 60.05
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
LULU is in the consumer goods sector. The company is best known for its women's yoga apparel.
The company reported earnings in early December and corporate guidance was lower than Wall Street expected. The stock plunged on this earnings warning. Now after three weeks of trying to bounce the stock is falling again. LULU is poised to breakdown below its December lows.
I am suggesting small bearish positions if LULU can trade at $57.00. Why small positions? That's because short interest is already at 17% of the 134.5 million share float. Any sudden bounce could spark some short covering.
If triggered at $57.00 our target is $51.00.
More aggressive traders could aim lower since the
Point & Figure chart for LULU is bearish with a $43 target.
Trigger @ 57.00
- Suggested Positions -
Buy the Feb $55 PUT (LULU1422N55) current ask $1.51
Entry on January -- at $---.--
Average Daily Volume = 4.6 million
Listed on January 06, 2014