Options Corner: LULU Lags Near 52-Week Low into Earnings

Lululemon reports earnings after the close Tuesday. Analyst Rick Ducat previews key price levels to watch, assesses where traders are pricing post-earnings moves via options/implied volatility, and outlines an example options trade to position around the print. The note is a pre-earnings technical and options primer that may influence short-term volatility and a directional move of a few percent in the stock.

Analysis

Lululemon reports earnings after the close Tuesday. Analyst Rick Ducat previews key price levels to watch, assesses where traders are pricing post-earnings moves via options/implied volatility, and outlines an example options trade to position around the print. The note is a pre-earnings technical and options primer that may influence short-term volatility and a directional move of a few percent in the stock.