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

Investors with a lot of money to spend have taken a bearish 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 11 uncommon options trades for Lululemon Athletica.

This isn't normal.

The overall sentiment of these big-money traders is split between 36% bullish and 54%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $291,622, and 5 are calls, for a total amount of $224,878.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $220.0 to $370.0 for Lululemon Athletica over the recent three months.

Insights into Volume & Open Interest

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 $220.0 to $370.0 in the last 30 days.

Lululemon Athletica 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

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.

Having examined the options trading patterns of Lululemon Athletica, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Lululemon Athletica's Current Market Status

• Currently trading with a volume of 333,256, the LULU's price is up by 2.91%, now at $240.23.
• RSI readings suggest the stock is currently may be approaching oversold.
• Anticipated earnings release is in 21 days.

Professional Analyst Ratings for Lululemon Athletica

5 market experts have recently issued ratings for this stock, with a consensus target price of $330.8.

• An analyst from Goldman Sachs has revised its rating downward to Neutral, adjusting the price target to $286.
• Consistent in their evaluation, an analyst from TD Cowen keeps a Buy rating on Lululemon Athletica with a target price of $420.
• An analyst from JP Morgan persists with their Overweight rating on Lululemon Athletica, maintaining a target price of $338.
• In a cautious move, an analyst from Citigroup downgraded its rating to Neutral, setting a price target of $300.
• Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Lululemon Athletica with a target price of $310.

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.