Put Options on LULU on 3/21/2013

lululemon athletica inc.  designs, manufactures, and distributes athletic apparel for women, men, and female youth. The company’s line of apparel and accessories 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 franchise stores; direct to consumer through e-commerce; and a network of wholesale channel, such as yoga studios, health clubs, and fitness centers. As of January 29, 2012, it had 47 stores in Canada, 108 stores in the United States, 18 stores in Australia, and 1 store in New Zealand under the lululemon athletica and ivivva athletica brand names. lululemon athletica inc. was founded in 1998 and is based in Vancouver, Canada.

Stockwinners is bearish on this name for the following reasons:

1. Shares have formed a bearish flag.
2. Stock should drift lower from here after the company recalled their "unacceptably transparent" yoga pants.

Trade Buy 1 April $62.50 Put at $1.50 For a net debit of $1.50 Profit/Loss Analysis Breakeven at $61.00 Maximum profit is unbounded Maximum loss is ($150.00) at strike of $63.00 Closing Summary Sold 1 April $62.50 Put at $0.00

Position closed on 4/19/2013 at price of $0.00 with a -100.00% loss in 29 days.

Updates

4/19/2013 12:54:46 PM

This trade went against us.

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