On CNBC's "Trading Nation," Todd Gordon suggested a bullish options trade in Lululemon Athletica Inc LULU. He owns the stock in his portfolio, but he is looking to get more active in the options market.
Lululemon just got some good news from Bank of America. The analyst raised its price target to $390 and the stock is currently trading at $341. Gordon believes the stock is well position to benefit in the current stay-at-home environment.
He noticed a gap on Lululemon's chart in the $360 and $340 region and he thinks the gap is set to close. To make money on a potential move higher, Gordon wants to buy the November $340/$360 call spread for $7.80. The max profit is $12.20 and the trade breaks even at $347.80.
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