Dan Nathan Sees Unusal Options Activity In Lululemon Athletica inc.

Speaking on CNBC's Options Action Dan Nathan said that he noticed an interesting options trade in Lululemon Athletica inc. LULU. On a day when call options outnumbered puts 3 to 1, somebody bought 1,200 contracts of the March 45 call option for $4.35 and spent around $500,000 in premium. The trader sees Lululemon Athletica inc. 10 percent higher on March expiration. The company is going to report earnings on December 11, and although the trader opened a position before earnings, because of March expiration, this is not an earnings play. Nathan sees this move as a way to play for a break out at $50 with limited risk.