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Mike Khouw Sees Unusual Options Activity In Lululemon Athletica

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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