I’m bullish on Lululemon $LULU. They offer a great shopping experience whether you’re male on female. Yes, their primary customer demographic is Female 18yo – 60 yo., but they’ve made a push to expand to men with increased offerings. I personally own several items from the store that I’ve bought myself.
Regardless, they cater to the luxury buyers with their high prices. However, I’ve found their clothes to be of good quality and they fit me well. Their stock has increased steadily over the last 3 years. If you look at the 3 year chart, they’ve gone from $110.71 to a high of $485.83. Yes, they’ve dropped recently to a low of $413 and are hovering around $425 right now. But, if you look at their previous dips, they’ve dropped $80-100 before climbing to new highs.
Earnings are after the bell on Thursday Dec. 9. My yolo trade for earnings is to sell 10 DEC 21 420 puts for $16.50 in premium. I’ll keep the premium if the stock stays above $420 by Friday. If not, my breakeven is $403.5 . The last time it was down at $400 was mid October. This is a short term trade that I’ll look to buy to close on Friday or possibly just let it expire. If the trade moves against me, I’ll most likely just take assignment on LULU. You could also just roll it to for a credit if you don’t want to take assignment.
Jump on the luxury athleisure train. I’m not betting against how willing women are to spend on a luxury clothing line. Choo Choo!
This is not financial advice. It’s just me sharing my trading experience and ideas. Do your own research and trade within your means.