Jim Strugger's Lululemon Trade

Speaking on Bloomberg Markets, Jim Strugger of MKM Partners recommended two options strategies in Lululemon Athletica inc. (NASDAQ: 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.