How Lululemon Athletica Could Trade After Earnings

Lululemon Athletica Inc LULU is scheduled to report its quarterly results after the bell on Thursday. The company is expected reported revenues and earnings of $1.55 billion and $1.43 a share, versus the year-ago figures of $1.23 billion and $1.16 per share, respectively.

On CNBC's "Options Action," Tony Zhang said that the stock traded 2.7 times its average daily volume on Wednesday. The options market is implying a move of over 9% after the release of results, versus the average 6.8% over the last eight quarters, he added.

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There was a seller of 400 of the June 215/360 straddles at $3.14 per contract on average, Zhang mentioned. The trader sees shares of Lululemon Athletica trading between $212 and $363 by June expiration, he added.