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LULU

ROLLING LULU APRIL 8TH 68 TO APRIL 15TH 68.5 SHORT CALLI didn't like how price was dancing around my short call strike post earnings, particularly with an analyst upgrade that's probably keeping it there, so I rolled the April 8th 68 short call to the April 15th 68.5 to give it a touch more space and time to work out (filled for a .12 ($12) credit). Since I closed out my original setup's short put at near worthless, I also sold a 63.5 short put in the same expiry for an additional .32 ($32) credit), resulting in an April 15th 63.5/68.5 short strangle.
NASDAQ:LULU
by NaughtyPines
TRADING IDEA: LULU APRIL 8TH 54/68.5 SHORT STRANGLEI'm going to go with a nondirectional bias here (pretty much always do). Here are the metrics for both a run of the mill one standard deviation short strangle, as well as an iron condor: April 8th 54/68.5 short strangle Probability of Profit: 70% Max Profit: 1.30/contract ($130) Buying Power Effect/Max Risk: ~$616/undefined Break Evens: 55.30/67.20 April 15 50/54/68.5/72.5 iron condor Probability of Profit: 68% Max Profit: 1.00/contract ($100) Buying Power Effect/Max Risk: $301/contract Break Evens: 53.01/69.49 Notes: I had to go a touch farther out in time for the iron condor to get the long options strikes I wanted, but it'll still yield about $100/contract ... . Look to take either setup off at 50% max profit on the volatility contraction that is likely to occur post earnings.
NASDAQ:LULU
by NaughtyPines
1
NEXT UP: LULU EARNINGS -- WEDNESDAY BEFORE MARKETLULU announces earnings on Wednesday before market open, so look to put on your setup before close on Tuesday. This is what I'm looking at tentatively right now: April 8th 53.5/68.5 short strangle Probability of Profit: 73% Max Profit: $124/contract Buying Power Effect/Max Risk: $616/undefined Notes: This is a tentative setup. Naturally, a lot depends on how much LULU's volatility rises here, as well as how much its price moves before the announcement. Also, I don't think I'm going to see $1.24 come Tuesday, although you never know (.92's the low; 1.24 the mid; 1.55 the high for this setup). I'll also try to post a defined risk iron condor if I can work out a setup that'll yield something close to a $1.00 credit ($100/contract) ... .
NASDAQ:LULU
by NaughtyPines