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Mike Khouw talked on CNBC's Options Action about a stock that caught his attention on Monday because it had higher than usual options activity.

Lululemon Athletica (NASDAQ: LULU) had twice its daily trading options volume and the most active were the October 40 call options which traded around $3.

The traders who bought these options believe that Lululemon is going to trade above $43 at October expiration. Khouw added that there might be something in this trade because the stock struggled recently and had double-digit growth of both revenue and EPS in the last five years.

Lululemon gained 0.94 percent and closed at $40.83.

Posted-In: Mike KhouwCNBC Media

 

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