lulu looking for some recoverylulu bullish view for the week ahead, could recover some after a better second quarter with a some what calm after the storm approach low volume on the pullback and the range has contracted nicely after expansion for another possible move up, although i advise caution as price has closed just below its 50ma on the hourly so i would like to see price back above its previous days high before thinking about entering.
1LUL trade ideas
Gap up out of support after positive earnings surpriseEarnins were 14% bettern than expected. Last time earnings were better than expected LULU made 20% profit in less than a year!
Here, price bounces out of support area. Implied volatility rasies, almost 30%. If the Gap partially closes next week I expect IV to grow even further and potentially provide some noce premium to collect on selling calls below the support are
$LULU Possible Long, Past - Present repeat.Possible long if it has some resistance around the 45.27. But could possibly fall lower around 20%. The drop on earnings is definitely an overreaction. This has a lot of movement on earnings but lets see what it does. If it drops to the points where past resistance happened this might be a good long position.
High risk high reward LULU play on earningsLULU is getting absolutely HAMMERED after-market due to bad earnings. It's almost down to $55 overnight. This represents an unprecedented buying opportunity... provided it doesn't fall through the floor I've outlined.
Watch the price action closely at the open. If there's lots of buying pressure, consider jumping in and riding the gap fade up. Could be extremely profitable.
On the other hand, if there's no buying pressure, don't bother with this one.
LULU - Quarter-end washout. 4:1 ST upside. Good entry point LT$51 BUY with $49.95 Stop and ST target bounce back to $54.50 resistance ant MT target $59.75. Fundamental investors will back up the truck at $46 (20x $2.30 EPS), which provides solid underpinning. LULU always gives conservative guidance, setting up for 2017 upside surprises for longer-term investors.
Fall slumpThe retail market in the United States and Canada was not performing well, so many investors began pulling out of retail stocks like lululemon.
On Dec. 7, 2016, lululemon released its financial statement and it reported better results than even the company had predicted. Stocks went up that day.
LULU this weekIdea "borrowed" from here:
www.reddit.com
"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
Fundamental improvement drives stock re-ratingThis thread/idea takes over from the previous one, where we initiated a long position at 55.
We assume a long position at $60/share to take into account the call conversions (please see related idea below).
FUNDAMENTALS ON THE UP AND UP
LULU surprised positively on both top and bottom lines
Most notable improvement = Gross margin expansion by 4.2%
Fundamental improvement --> Long-awaited re-rating in the stock
Broker upgrades are still feeding through post earnings release
TECHNICAL IMPROVEMENT
Long-term turning positive
Medium-term positive
Short-term positive, overbought
Expect some (time) consolidation in the visible term
We look for a close above $70 for further sign of strength
Next hurdle: To close the gap formed between 71.65 and 75.12
NEXT TARGET = $80/SHARE
Existing holders are already in the money and should stay long
New investors could go long here (1/2 position) and buy more (1/2 position) on a pull back towards $66
RISK/REWARD STILL COMPELLING
TARGET = $80/SHARE
STOP-LOSS = $66/SHARE
REWARD/RISK = 2.5X (assuming new position initiated at $70)