On CNBC's "Options Action," Mike Khouw advised a viewer who has a neutral to bearish view on Lululemon Athletica Inc LULU to sell upside call spreads in the name.
Khouw agrees with the viewer's perspective on the stock and because of Lululemon's high implied volatility, he thinks the sale of call spreads is the best way to trade on the neutral to bearish view on the stock. The implied volatility is elevated because the company is scheduled to report earnings on Tuesday after the market close.
Carter Worth said that the stock is rich and he would look to trim a long position or take measures.
Tony Zhang is concerned about competition from Peloton Interactive Inc PTON, so he sees a limited upside for the stock.
Related Links:
Lululemon Athletica Analysts Size Up Retailer Ahead Of Q2 Report, Talk Mirror Acquisition
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