LU LULU Lululemon Athletica Inc. Loading... : Investor Sentiment and Bull/Bear Views

The author holds bought puts on Lululemon as a bearish bet, opened at last week's top, and has trimmed but remains net long puts. No specific catalyst or downside target is stated beyond the entry timing.

The author doubled down on Lululemon puts yesterday and reports they are printing today, indicating a bearish bet on the stock. The position is expressed via bought puts, so the bearish exposure is option-based rather than a share short. No specific catalyst or downside target is given beyond the current move.

The author argues LULU is a value trap: despite being down 55-60% this year, trading at a historically unthinkable multiple, with $7B+ in past buybacks and a strong balance sheet, the cheapness is a warning rather than an opportunity. The stated mechanisms are stalled revenue growth, a wobbling China growth story, core customers drifting to competitors, and forward estimates that keep getting cut each quarter, which repeatedly re-justifies the 'cheap' multiple. No specific catalyst or time horizon is given beyond the quarterly earnings cadence; the main risk to the bearish view is that the depressed multiple and buybacks could support a re-rating if growth stabilizes.