Scott Bauer of Trading Advantage shared with the viewers of Bloomberg Markets an options trading idea in Ulta Beauty Inc ULTA.
The company is going to report earnings Thursday and Bauer believes it's going to trade lower after the report. He explained that Ulta Beauty announced 17 percent comparable same-store sales and he thinks it's going to be difficult for it to match that number.
Bauer wants to buy the March 10, 262.50 put and sell the March 10, 257.50 put ahead of the earnings report. He added that he would be a buyer of the stock at $255.
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