This is why I strongly believe that weekly options should be BANNED. An ANAL-yst can easily manipulate the price of the stock movement on any given day of the week (especially Fridays). How many of his buddies loaded up on cheap penny puts yesterday?
Furthermore, CS cut their price target on LULU 2 months ago claiming that they saw "heavier than usual discounting". This was so far from the truth since Q3 earnings saw NO margin compressions.
My mom says "There are no blind men, except those who do not want to see". Margins are coming down or don't you see it. This company was in the double digits and is coming to single digits, and from now on this only gets worse. Remember the payroll tax, notice the upcoming cuts to all the social, and no social programs, all of these cuts have influence in how we purchase. Enjoy life, do not fall in love with a stock, do fall in love with your wife and/or kids.
LULU is going down in the near term. You guys have to realize that there is a lag effect between when a significant catalyst (like a downgrade from a well established bank on Wall Street aka CS) occurs and when stock prices fully reflect the new information. Large institutional investors like hedge funds, through company policy/mandate, require certain channels/procedures to be followed before positions can be entered into or exited. I'm a LULU faithful, but I sold on Friday following this downgrade. I'll probably come back in when the dust settles and LULU finds its next resistance point. I just don't see any near term catalyst that will drive the stock price up. We just had earnings (which were stellar again!) and there are no KNOWN catalysts to move us higher in the near term. Just my two cents.