NEW DIRECTIONAL CALL PLAYS
Lululemon Athletica - LULU - close: 73.78 change: +1.50
Stop Loss: 71.70
Current Option Gain/Loss: Unopened
Time Frame: 3 to 5 weeks
New Positions: Yes, see below
Why We Like It:
LULU was seeing some volatility last week around its earnings report. Yet since then traders have been buying the dips. Shares are poised to breakout past resistance at the $74 level. If that happens LULU could see a short squeeze that lifts it toward $80.00. The most recent data listed short interest at 20% of the 101 million share float.
I am suggesting a trigger to buy calls at $74.25. If triggered our target is $79.00.
FYI: The Point & Figure chart for LULU is bullish with an $88 target.
Trigger @ 74.25
- Suggested Positions -
buy the 2013 Jan $75 call (LULU1319a75) current ask $3.15
Entry on December xx at $ xx.xx
Average Daily Volume = 2.1 million
Listed on December 11, 2012