Jim Strugger's Lululemon Trade

Speaking on Bloomberg Markets, Jim Strugger of MKM Partners recommended two options strategies in Lululemon Athletica inc. LULU, which is going to report earnings on Thursday after the close.

To make a bullish trade, Strugger wants to buy the October 145/155 call spread for $3. The trade breaks even at $148 or 7.1 percent above the current stock price.

For investors with a long position in the name, Strugger thinks it would be a good idea to sell the September 150 call and buy the September 128 put. The trade wouldn't require him to pay an additional premium and it provides protection below $128.