4 Trade Ideas for lululemon: Bonus Idea

• Posted by Greg Harmon
• on February 3rd, 2025

Here is your Bonus Idea with links to the full Top Ten:

lululemon athletica, $LULU, comes into the week at resistance. The Bollinger Bands® are open higher with the RSI deep in the bullish zone and the MACD positive and climbing. A push over resistance gives a target to 550. There is resistance at 421 and 425 then 435 and 443 before 457 and a gap to fill to 471. Support lower is at 407 and 386. Short interest is moderate at 4.6%. Enter long on a move over 421 with a stop at 406. The stock does not pay a dividend.

The company is expected to report earnings next on March 19. The February options chain shows biggest open interest at the 367.50 and 370 strikes. On the call side it is biggest at 400 then 450. In the March chain, spanning the earnings report, it is biggest at the 340 then 360 put strikes and at the 400 then 460 call strikes. Finally, in the June chain, open interest is spread from 390 to 320 on the put side with a pocket from 460 to 480 then 380 to 400 on the call side.

lululemon athletica, Ticker: $LULU

Trade Idea 1: Buy the stock on a move over 421 with a stop at 406.

Trade Idea 2: Buy the stock on a move over 421 and add a March 410/370 Put Spread ($14.35) while selling the June 490 Call ($14.10).

Trade Idea 3: Buy the February/March 450 Call Calendar ($6.30) while selling the March 360 Puts ($3.50).

Trade Idea 4: Buy the June 370/420/470 Call Spread Risk Reversal (2.50).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with January in the books, saw equity markets show resilience with a rebound from an ugly start Monday only to end the week on a sour note.

Elsewhere look for Gold to continue its move to new highs while Crude Oil drops in a broad consolidation range. The US Dollar Index continues to drift to the upside while US Treasuries pullback in their downtrend. The Shanghai Composite looks to re-open and continue the sideways consolidation while Emerging Markets continue a short term move lower.

The Volatility Index looks to remain low and stable, making the path easier for equity markets to the upside. Their charts look strong on the longer timeframe. On the shorter timeframe the SPY, the QQQ and the IWM all look to be in a short term consolidation, disappointing after what looked at midweek like a renewed short term uptrend. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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