Shares of Lululemon Athletica are working to break their downtrend as a large trade looks for a bounce back near highs.
LULU is down this morning, giving up 1.6 percent to trade at $60.65. Shares of the women's athletic apparel company were down to $54 two weeks ago, filling a gap that opened in early January as the stock ran to a high of $81.09 in early May.
The options volume in LULU is twice its daily average. A trader bought 3,000 September 70 calls for above the ask price of $1.82 and, seconds later, sold 5,000 September 77.50 calls for $0.54, below the bid price, according to optionMONSTER's systems. The volume at both strikes was well above open interest, so this was a new opening ratio spread.
The call spread takes a maximum profit if LULU climbs to the $77.50 area but adds risk above that level. (See our Education section)
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