Put Spread on LULU on 12/16/2013

lululemon athletica (LULU) designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth.

It operates in three segments: Corporate-Owned Stores, Direct To Consumer, and Other.

The company’s line of apparel include fitness pants, shorts, tops, and jackets for healthy lifestyle activities, such as yoga, running, and general fitness. Its fitness-related accessories comprise bags, socks, underwear, yoga mats, instructional yoga DVDs, and water bottles. The company sells its products through a chain of corporate-owned and operated stores; direct to consumer through e-commerce Websites; and a network of wholesale channel, such as premium yoga studios, health clubs, and fitness centers.

Shares have formed a bearish "flag" and are expected to move lower on several developments! First, the company ousted the founder after it missed its quarterly results and named a new CEO. These developments come no too long after the firm had its biggest recall of its products!

52-Week Trading Range: $57.83 - $82.50

Last Trade: $57.84

Trade Buy 1 January $57.50 Put at $2.40 Sell 1 January $55.00 Put at $1.40 For a net debit of $1.00 Profit/Loss Analysis Maximum profit is $150.00 at strike of $55.00 Maximum loss is ($100.00) at strike of $58.00 Closing Summary Sold 1 January $57.50 Put at $6.50 Bought 1 January $55.00 Put at $4.40

Position closed on 1/13/2014 at price of $2.10 with a 110.00% gain in 27 days.

Updates

1/13/2014 9:34:52 AM

We are taking profits on LULU put spread

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