Behind the Scenes of Lululemon Athletica's Latest Options Trends

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 35 uncommon options trades for Lululemon Athletica.

This isn't normal.

The overall sentiment of these big-money traders is split between 42% bullish and 57%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $403,990, and 28 are calls, for a total amount of $1,832,331.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $310.0 to $650.0 for Lululemon Athletica over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. 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 trades within a strike price range from $310.0 to $650.0 in the last 30 days.

Lululemon Athletica Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

About Lululemon Athletica

Lululemon Athletica Inc. 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 670 company-owned stores in 19 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 553,294, the LULU's price is up by 0.8%, now at $505.63.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 98 days.

Professional Analyst Ratings for Lululemon Athletica

5 market experts have recently issued ratings for this stock, with a consensus target price of $515.8.

• An analyst from Telsey Advisory Group has decided to maintain their Outperform rating on Lululemon Athletica, which currently sits at a price target of $520.
• An analyst from Wells Fargo downgraded its action to Equal-Weight with a price target of $445.
• Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on Lululemon Athletica with a target price of $493.
• Consistent in their evaluation, an analyst from Needham keeps a Buy rating on Lululemon Athletica with a target price of $525.
• An analyst from Stifel has decided to maintain their Buy rating on Lululemon Athletica, which currently sits at a price target of $596.

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.

If you want to stay updated on the latest options trades for Lululemon Athletica, Benzinga Pro gives you real-time options trades alerts.