What to Expect From Lululemon's Quarterly Report

Lululemon Athletica Inc (NASDAQ:LULU) is slated to report earnings after the market's close on Thursday, Aug. 24. Over the last two years, LULU was higher after five of its earnings reports, including an 11.3% pop in June and a 112.7% jump in March. The stock averaged a swing of 8.2%, regardless of direction, while this time around the options pits are pricing in a slightly bigger move of 11.2%. 

Shares were last seen 3.7% lower at $363.89, though long-term support from the stock's 120-day moving average seems to be keeping today's pullback in check. After a stellar first half of the year, the equity has traded in channel contained between the $375 and $395 levels of late. This upper level has served as a ceiling since mid-July, while LULU looks poised to breech the lower area should today's trading continue as it is. Year to date, Lululemon Athletica stock is still up 13.6%.

Just ahead of the event, sentiment is unusually bearish. Specifically, LULU's Schaeffer's put/call open interest ratio (SOIR) of 1.44 stands higher than 96% of readings from the past 12 months, implying a bearish bias amongst short-term options traders.