David Bartosiak's Lululemon Options Trade

David Bartosiak of Zacks.com shared with the viewers of Bloomberg Markets a bullish options strategy in Lululemon Athletica inc. LULU.

The company is going to report earnings in December and Bartosiak believes it's going to beat expectations, because its guidance is very conservative. He wants to sell a slightly out of the money put spread to make money in Lululemon after it reports earnings. Bartosiak wants to sell the December 52.50 put and buy the December 50 put for a total credit of $0.75.

He is going to collect the premium if the stock stays above $52.50 and the trade starts to lose money below $51.75. It can maximally lose $1.75.