Call Options on LULU on 6/11/2013

lululemon athletica inc., together with its subsidiaries, 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. As of February 3, 2013, it operated 135 stores in the United States, 51 stores in Canada, 23 stores in Australia, and 2 stores 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.com is bullish on this name for the following reasons:

1. The move seems way overextended and overdone. The stock needs to get a bounce from its current level.
2. The Risk/reward ratio seems very attractive.

Trade Buy 1 July $70.00 Call at $2.72 Sell 1 July $75.00 Call at $1.20 For a net debit of $1.52 Profit/Loss Analysis Breakeven at $71.52 Maximum profit is $348.00 at strike of $75.00 Maximum loss is ($152.00) at strike of $70.00 Closing Summary Sold 1 July $70.00 Call at $1.03 Bought 1 July $75.00 Call at $0.40

Position closed on 6/12/2013 at price of $0.63 with a -58.55% loss in 0 days.

Updates

6/12/2013 2:11:22 PM

We are closing this position. Stock did not get the expected rebound.

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