NaughtyPines

TRADING IDEA: LULU APRIL 8TH 54/68.5 SHORT STRANGLE

NASDAQ:LULU   LULULEMON ATHLETICA INC
8 months ago
I'm going to go with a nondirectional bias here (pretty much always do).

Here are the metrics for both a run of the mill one standard deviation short strangle, as well as an iron condor:

April 8th 54/68.5 short strangle
Probability of Profit: 70%
Max Profit: 1.30/contract ($130)
Buying Power Effect/Max Risk: ~$616/undefined
Break Evens: 55.30/67.20

April 15 50/54/68.5/72.5 iron condor
Probability of Profit: 68%
Max Profit: 1.00/contract ($100)
Buying Power Effect/Max Risk: $301/contract
Break Evens: 53.01/69.49

Notes: I had to go a touch farther out in time for the iron condor to get the long options strikes I wanted, but it'll still yield about $100/contract ... . Look to take either setup off at 50% max profit on the volatility contraction that is likely to occur post earnings.
8 months ago
Comment: Had to tweak the setup slightly to a 54/68 (same expiry). Filled for a 1.30 credit ($130)/contract.
MrNeutral PRO
8 months ago
I just wanted to say I like the way you showed your metrics and how your chart is simple and to the point. Good luck on your trade.
Reply
Ideas Scripts Chart
United States
United Kingdom
India
España
Italia
Brasil
Россия
Türkiye
日本
한국
Home Stock Screener Economic Calendar How It Works Chart Features House Rules Moderators For the WEB Widgets Stock Charting Library Priority Support Feature Request Blog & News FAQ Help & Wiki Twitter
Private Messages Chat Ideas Published Followers Following Priority Support Public Profile Profile Settings Billing Sign Out