Investors with a lot of money to spend have taken a bearish stance on Lululemon Athletica (NASDAQ:LULU).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with LULU, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 11 uncommon options trades for Lululemon Athletica.
This isn't normal.
The overall sentiment of these big-money traders is split between 18% bullish and 72%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $83,020, and 9 are calls, for a total amount of $395,585.
What's The Price Target?
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $340.0 to $370.0 for Lululemon Athletica during the past quarter.
Analyzing Volume & Open Interest
In today's trading context, the average open interest for options of Lululemon Athletica stands at 395.75, with a total volume reaching 1,114.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Lululemon Athletica, situated within the strike price corridor from $340.0 to $370.0, throughout the last 30 days.
Lululemon Athletica Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| LULU | CALL | SWEEP | BEARISH | 09/20/24 | $25.95 | $25.3 | $25.55 | $370.00 | $96.9K | 754 | 230 |
| LULU | PUT | TRADE | BEARISH | 01/16/26 | $54.5 | $54.05 | $54.5 | $350.00 | $54.5K | 243 | 10 |
| LULU | CALL | SWEEP | BULLISH | 06/21/24 | $27.2 | $26.5 | $26.95 | $340.00 | $51.2K | 182 | 20 |
| LULU | CALL | TRADE | NEUTRAL | 09/20/24 | $26.2 | $25.85 | $26.0 | $370.00 | $41.6K | 754 | 47 |
| LULU | CALL | TRADE | BEARISH | 09/20/24 | $26.1 | $25.3 | $25.5 | $370.00 | $40.8K | 754 | 257 |
About Lululemon Athletica
Lululemon Athletica designs, distributes, and markets athletic apparel, footwear, and accessories for women, men, and girls. Lululemon offers pants, shorts, tops, and jackets for both leisure and athletic activities such as yoga and running. The company also sells fitness accessories, such as bags, yoga mats, and equipment. Lululemon sells its products through more than 700 company-owned stores in about 20 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.
In light of the recent options history for Lululemon Athletica, it's now appropriate to focus on the company itself. We aim to explore its current performance.
Current Position of Lululemon Athletica
- Trading volume stands at 241,910, with LULU's price down by -0.7%, positioned at $350.49.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 17 days.
What Analysts Are Saying About Lululemon Athletica
2 market experts have recently issued ratings for this stock, with a consensus target price of $450.0.
- Consistent in their evaluation, an analyst from Baird keeps a Outperform rating on Lululemon Athletica with a target price of $505.
- An analyst from Barclays has revised its rating downward to Equal-Weight, adjusting the price target to $395.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Lululemon Athletica with Benzinga Pro for real-time alerts.