Lululemon Options Trader Sees Massive Downside Ahead Of Q2 Earnings

Lululemon Athletica Inc LULU is scheduled to report its second-quarter results on Thursday after the bell.

On CNBC's "Options Action," Dennis Davitt of Millbank Dartmoor Partsmouth said that the two-day options for Lululemon Athletica imply a move of around 7% after the company reports earnings. That’s a “big move” in a stock that is priced at around $300.

Check out other stocks making moves in the premarket.

There was a buyer of 1,500 of the September 2 weekly 250-puts at an average price of 40 cents per contract, Davitt mentioned. Traders expect shares of Lululemon Athletica to retest May’s lows by Friday, he added.

LULU Price Action: Shares of Lululemon Athletica declined by 2.32% to settle at $299.96 on Wednesday.