Quantchabot has detected a new Bull Call Spread trade opportunity for LULULEMON ATHLETICA (LULU) for the 23-May-2025 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
LULU was recently trading at $301.83 and has an implied volatility of 40.30% for this period. Based on an analysis of the options available for LULU expiring on 23-May-2025, there is a 34.31% likelihood that the underlying will close within the analyzed range of $302.26-$324.87 at expiration. In this scenario, the average linear return for the trade would be 10.41%.
Big 7.88% Change: After closing the last trading session at $279.77, LULULEMON ATHLETICA opened today at $297.98 and has reached a high of $309.82.
Trade approach: A movement as big as 7.88% is a significantly bullish indicator, so this trade is designed to be profitable if LULU maintains its current direction and does not revert back to pricing on the bearish side of $301.83 on 23-May-2025. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if LULULEMON ATHLETICA closes at or above $301.75 on 23-May-2025. Based on our risk-neutral analysis, there is a 50.93% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.
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