DailyPlay – Rolling Trade (LULU) – August 22, 2024

Closing Trade

• LULU – 49.23% gain: Buy to Close 2 Contracts (or 100% of your Contracts) Sept 20th $240/$220 Put Vertical Spreads @ $3.96 Debit. DailyPlay Portfolio: By Closing both Contracts, we will pay $792. We opened these 2 Contracts on August 9 @ $8.12 Credit. The gain, therefore, is $832 which is almost 1% gain on our Portfolio. 

LULU Bullish Opening Trade Signal

Investment Rationale

As LULU trades higher on the back of better than expected consumer spending data, it has reached a take profit level. We are going to adjust this position by rolling it up and out to the Sept 27 $260/$240 Put Vertical @ $6.93 Credit. We are looking to continue this upward momentum and targeting $295 to the upside.

By Rolling LULU we will Close the initial trade and Open a new trade with different strikes and expiry date.

LULU – Daily

Trade Details

Strategy Details

Strategy: Short Put Vertical Spread

Direction: Bullish Credit Spread

Details: Sell to Open 1 LULU Sept 27th $265/$240 Put Vertical Spread $9.46 Credit per Contract.

Total Risk: This trade has a max risk of $1,554 (1 Contract x $1,554) based on a hypothetical $100,000 portfolio risking 2%. We suggest using 2% of your portfolio value and divide it by $1,554 to select the # contracts for your portfolio.

Trend Continuation Signal: This is a bullish trade on a stock that is in a strong bullish trend and expected to continue higher.

1M/6M Trends: Mildly Bullish/Bearish

Relative Strength: 1/10

OptionsPlay Score: 89

Stop Loss: @ $18.92 Debit (100% loss to the value of premium)

View LULU Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Wednesday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View LULU Trade