Someone with a lot of money to spend has taken a bearish stance on Lululemon Athletica (NASDAQ:LULU).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, 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 this whale just did?
Today, Benzinga's options scanner spotted 40 uncommon options trades for Lululemon Athletica.
This isn't normal.
The overall sentiment of these big-money traders is split between 32% bullish and 67%, bearish.
Out of all of the special options we uncovered, 16 are puts, for a total amount of $793,309, and 24 are calls, for a total amount of $1,759,309.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $325.0 to $520.0 for Lululemon Athletica over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Lululemon Athletica options trades today is 275.43 with a total volume of 5,237.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Lululemon Athletica's big money trades within a strike price range of $325.0 to $520.0 over the last 30 days.
Lululemon Athletica Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| LULU | CALL | SWEEP | BEARISH | 06/17/22 | $440.00 | $528.8K | 207 | 437 |
| LULU | PUT | SWEEP | NEUTRAL | 05/20/22 | $360.00 | $164.6K | 280 | 318 |
| LULU | PUT | TRADE | BEARISH | 04/22/22 | $405.00 | $137.6K | 142 | 249 |
| LULU | CALL | TRADE | BULLISH | 01/20/23 | $380.00 | $115.0K | 191 | 31 |
| LULU | CALL | SWEEP | BEARISH | 04/29/22 | $390.00 | $104.9K | 484 | 75 |
Where Is Lululemon Athletica Standing Right Now?
- With a volume of 2,280,095, the price of LULU is down -4.76% at $385.4.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 43 days.
What The Experts Say On Lululemon Athletica:
- Deutsche Bank has decided to maintain their Buy rating on Lululemon Athletica, which currently sits at a price target of $428.
- Truist Securities upgraded its action to Buy with a price target of $495
- B of A Securities has decided to maintain their Buy rating on Lululemon Athletica, which currently sits at a price target of $450.
- Barclays has decided to maintain their Overweight rating on Lululemon Athletica, which currently sits at a price target of $441.
- Citigroup has decided to maintain their Neutral rating on Lululemon Athletica, which currently sits at a price target of $400.
Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.
