LULU this week
Updated
Idea "borrowed" from here:
reddit.com/r/wallstreetbets/comments/5mrxbv/watch_lulu_this_week/
"LULU will be participating in the 19th annual ICR conference this week between 1/9 – 1/11 where the company is scheduled to present on day 2 (1/10).
"On Wednesday there was a buyer of the January 13th 70 calls 3,994 times for $2.39. Then on Friday there was a buyer of the January 13th 70/75 vertical call spread 2,000 times for $1.35. Next week’s options have bids up to $80 on the call side and all the way down to $50 on the put side with the at the money straddle pricing in about a 7% move either way.
"During last year’s ICR conference LULU raised their EPS and revenue guidance for the following quarter in pre market ahead of their presentation. This sent the stock higher by as much as 12% that day."
IV on the Jan13's are around 74%.
Looking at a 60/64/72/75 IC @ 1.07
reddit.com/r/wallstreetbets/comments/5mrxbv/watch_lulu_this_week/
"LULU will be participating in the 19th annual ICR conference this week between 1/9 – 1/11 where the company is scheduled to present on day 2 (1/10).
"On Wednesday there was a buyer of the January 13th 70 calls 3,994 times for $2.39. Then on Friday there was a buyer of the January 13th 70/75 vertical call spread 2,000 times for $1.35. Next week’s options have bids up to $80 on the call side and all the way down to $50 on the put side with the at the money straddle pricing in about a 7% move either way.
"During last year’s ICR conference LULU raised their EPS and revenue guidance for the following quarter in pre market ahead of their presentation. This sent the stock higher by as much as 12% that day."
IV on the Jan13's are around 74%.
Looking at a 60/64/72/75 IC @ 1.07
Note
buy 72/75 call spread ask @ 0.65sell 72/75 put spread bid @ 2.15
buy 60/64 put spread ask @ 0.60
sell 60/64 call spread bid @ 2.80
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