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LULU

LULU SCALING UP Possible 123 pattern. Earning announcement in Sep 8th. If your looking for a quick trade best to wait for 4th pattern to develop as an entry point to go long. 2nd options is aggressive and its shorting at the resistances level 3rd pattern, then exiting near (or reaching near) 4th pattern. Anomaly movement is no rally to the 5th pattern point, consolidation (horizontal pattern), or decline. However caution on false break tho, because the trend is your friend. RSI is oversold so possible pop to the 3rd pattern could develop from now (Aug) to Sep. If stock is up nearing earnings release then I expect 4 scenarios. For instance a positive announcement I expect a gap up and maybe an overreaching of pattern 3, followed by a declining developing a 4 pattern. In contrast, if the announcement is bad and LULU is around the price level of patter 3 of the channel I expect a gap down to the forth pattern in the channel. 3rd is if earnings announcement is mixed, which most likely still precluded to be negative either way then expect a decline. lastly, nothing will happen and the only movement is intraday noise - hence the fluctuation between patterns 1 & 2. Longterm trend may remain the same.
NASDAQ:LULULong
by TraderMD
BOUGHT TO CLOSE LULU APRIL 15TH 63.5/68.5 SHORT STRANGLEWith this little dip here we got today, I bought back my LULU short strangle to close it out for a small profit. Here's the whole chain: Sold to open LULU April 8th 54/68 short strangle for $130 credit Bought to close LULU April 8th 54 short put for a $2 debit Rolled LULU April 8th 68 short call to April 15th 68.5 short call for a $17 credit Sold to open LULU April 15th 63.5 short put for a $32 credit Bought to close LULU April 15 63.5/68.5 short strangle for a $143 debit Total Credits Collected: $179 Total Debits Paid: $145 Profit: $34/contract; $26/contract after fees/commissions Naturally, it would have been nice if the setup had worked out from the get-go, I'd been able to take 50% of the original credit received as profit and moved on, but things don't always work out that way. The important thing is that it isn't a loser, and that I got out of it fairly quickly for scratch or better and can now redeploy the buying power on a higher probability setup ... .
NASDAQ:LULU
by NaughtyPines
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