Buy LULU puts with time, or Sell call credit spread.

NASDAQ:LULU   lululemon athletica inc
Remember this is a weekly chart. Price retreated from 400 and I am not sure if stock price will remain so high after earnings , or going into mid-year.

Stock price can move substantially lower which will make a great swing trade. Options volume is low on this stock, and so is general stock volume . If you are not willing to hold for a few weeks for price to change meaningfully, then you may want to skip this trade idea.
Comment: Stock under 405 remains bearish. Notice that options farther out in time are less affected by intraday price moves because they have lower gamma.
Comment: Sorry correction - I was on mobile before and missed it. Daily chart shows 406 as high on 28 Dec'21. I am holding puts for now and will see what happens this week.
Comment: . ER not until end of June. P/E is 54. I still think stock goes below 400 but maybe not so soon. So what choices do I have to manage this trade?

1. Sell puts, take loss, move on
2. Trim position, sell some keep some
3. With #1 or #2, day trade or swing calls
4. Hold puts even though price is over 406
5. Buy more puts

I will never choose #5 because if I am wrong I lose more and I do not want more capital in this trade. Choices 1&2 are best if I have less time to expiry, do not like technical conditions, or used too much capital. I would consider option 3 but not this time with price at resistance and low volume. I am going to choose #4 because I have time to hold puts and technically, chart shows me price should move lower soon.
Trade closed manually: LULU is 373 premarket. I will sell the remaining puts today. They captured about a 30pt change in stock price.

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