Decoding Lululemon Athletica's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on Lululemon Athletica 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 16 uncommon options trades for Lululemon Athletica.

This isn't normal.

The overall sentiment of these big-money traders is split between 68% bullish and 31%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $203,723, and 10 are calls, for a total amount of $465,109.

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 $300.0 to $510.0 for Lululemon Athletica over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Lululemon Athletica's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Lululemon Athletica's whale activity within a strike price range from $300.0 to $510.0 in the last 30 days.

Lululemon Athletica Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

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 680 company-owned stores in 19 countries, e-commerce, outlets, and wholesale accounts. The company was founded in 1998 and is based in Vancouver, Canada.

Following our analysis of the options activities associated with Lululemon Athletica, we pivot to a closer look at the company's own performance.

Present Market Standing of Lululemon Athletica

• With a trading volume of 232,279, the price of LULU is down by -0.4%, reaching $482.07.
• Current RSI values indicate that the stock is may be approaching oversold.
• Next earnings report is scheduled for 64 days from now.

What The Experts Say On Lululemon Athletica

Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $537.75.

• Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Lululemon Athletica, targeting a price of $561.
• In a cautious move, an analyst from HSBC downgraded its rating to Hold, setting a price target of $500.
• An analyst from Raymond James has decided to maintain their Outperform rating on Lululemon Athletica, which currently sits at a price target of $520.
• Consistent in their evaluation, an analyst from Keybanc keeps a Overweight rating on Lululemon Athletica with a target price of $570.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Lululemon Athletica options trades with real-time alerts from Benzinga Pro.