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. (NASDAQ: 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.