Author sees Lululemon's tariff-driven drop as overdone amid an uptrend and bought April 2026 $200 calls for a bounce.
Unpriced research observations (excluded from Calls and Returns):
LULU — LONG Author argues Lululemon was sold off only because the Supreme Court tariff decision was delayed, but the company has already handled tariffs well and is in a clear uptrend since November; he expects a bounce and bought April 2026 $200 calls. The option position expresses directional upside on the underlying LULU shares, and its returns would track the stock rather than option P&L. ambiguous_option_contract
LULU is already navigating a tariff world and doing just fine (see last earnings report). It’s in a clear uptrend since November and this thing will bounce.