Traders are looking for Lululemon Athletica to continue its uptrend at least through the end of next week.
Our monitoring program shows that more than 6,000 January 72 calls were purchased for $0.83 to $1.14 yesterday. This represents fresh buying, as open interest in the strike was only 345 contracts before the session began.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
LULU rose 2.78 percent to $68.19 yesterday and is up 17 percent in the last three months. The athletic-apparel retailer reported bullish quarterly numbers on Dec. 7 and is expected to announce its next earnings results after the close on March 30.
More From optionMONSTER