Lululemon Athletica, Inc. (LULU) is a major player for designing and selling athletic apparel. LULU is trading at $61.03 around the upper end of its 52 week range of $36.26-$70.00. Year to date the stock has increased over the market, by $5.71 or 10.23%. The stock dropped today by about 3.12%. This move happened after an unusually large number of bearish options hit the tape multiple times this morning.
Early on a trader bought 1,290 of the LULU May 29th Weekly 60 Puts for $0.49 at the market price when the stock was trading at $61.72. This order was recorded about half an hour after the open on OptionHacker and the stock dropped about $0.75 after the trade hit the tape. Another trader bought 1,264 of the LULU June 26th Weekly 55 Puts for $1.14 when the stock was trading at $61.37. Over 3,800 contracts of the May 29th Weekly 60 Puts and 2,700 of the June 26th Weekly 55 Puts have been traded today hinting at bearish sentiment. The May 29th Weekly 60 Puts for $0.49 have traded as high as $0.78 today making this a highly profitable trade.
Trade: A trader bought 1,290 of the LULU May 29th Weekly 60 Puts for $0.49
Risk: $49 per 1 lot
Reward: Unlimited
Breakeven: $59.51
If a trader would have purchased a 20 lot of these calls they would have seen profits of $580 at the highs on $980 in risk. This trade is a great example of hugely profitable weekly unusual options activity.
Regards,
Andrew Keene
President/Founder
KeeneOnTheMarket.com
