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Mike Khouw Sees Unusual Options Activity In Lululemon Athletica


CNBC Options Action's, Mike Khouw said on the show that three times daily options volume was traded in Lululemon Athletica inc. (NASDAQ: LULU) on Tuesday and most of that action is attributable to the January 50 and the January 57.5 call options.

Somebody bought a big quantity of the January 50/57.5 call spreads, paying $2.10 for the spread. The trader believes that Lululemon is going to trade above $52.10 and below $57.50 at the January expiration, targeting 6 percent to 18 percent move.

Lululemon spiked 3.71 percent on Tuesday and closed at $48.67.


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Posted-In: CNBC Mike Khouw Options ActionOptions Markets Media