LULU is going down
LULU has weakening momentum, a long term H&S and volume cueing in a downside move. You can see that historically, LULU likes to make H&S patterns with the neccessary retest at the end of the H&S slightly overextending the trendline before capitulating. Taking a long-term short for a few months out is my play of choice. A calandar spread is a good way to hedge but with the potential for capitulation, I think an ATM or Slightly OTM naked put is the best strategy to go with.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.