Why Lululemon Is Likely To Make Big Moves After Q3 Earnings

Lululemon Athletica Inc. LULU is set to report earnings for the latest quarter after the closing bell on Thursday. 

On CNBC’s "Options Action," Kevin Kelly of Kelly Intelligence said Lululemon is down just 5% this year, outperforming other broad-based averages.

There were 1.6x more calls than puts on Wednesday, implying a move of 9%, compared to the average of 2.64% over the last eight reported quarters, he added.

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There was a buyer of the December 320-put/ 435-call straddles that expires this Friday, at an average of $1.21 per contract, Kelly mentioned. The trader expects Lululemon’s stock to make a big post earnings in either direction, he stated.

LULU Price Action: Shares of Lululemon gained 0.6% to $372.33 in the regular trading session on Wednesday and edged higher by 0.2% in after-hours trading.

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