Schaeffer's Top Stock Picks for '25

More Record Highs Could Be in Store for Lululemon Stock

LULU is up over 83% year-over-year

Digital Content Manager
Aug 3, 2020 at 12:59 PM
facebook X logo linkedin


The shares of Lululemon Athletica Inc (NASDAQ: LULU) are up 0.8% to trade at $328.34 this afternoon, enjoying a 83.2% year-over-year lead, with support from the 40-day moving average. More upside may be on the horizon, too, as its recent all-time-high of $337.57 on July 23 comes amid historically low implied volatility (IV) -- a combination that has been a bull signal in the past.

According to data from Schaeffer's Senior Quantitative Analyst Rocky White, there have been five other times in the past five years when the stock was trading within 2% of its 52-week high, while its Schaeffer's Volatility Index (SVI) sat in the 20th percentile of its annual range or lower -- as is the case with LULU's current SVI of 36%, which sits near the 13th percentile of its 12-month range. The data shows that one month after these signals, the stock was higher 80% of the time, averaging a one-month return of 3.3%. From its current perch, a move of similar magnitude would put the security just above $339, constituting a new record high. 

LULU

A look at the equity's options pits shows calls overwhelming puts. In fact, 144,832 calls were were exchanged in the past 50 days, as opposed to only 97,150 puts. On the other hand, LULU's Schaeffer's put/call open interest ratio (SOIR) of 1.13 stands higher than 65% of readings from the past year, implying short-term options traders have been more put-biased than usual.

 
 

Which of These SUB-$5 Stocks Could 26x From Here? (AD)

He called a rare 11x on Tesla…

Then he called a 26x on Workhorse…

Then an even rarer 35x on Nio Inc…

Now Tim Bohen says these 5 tiny “America First” stocks are next up in 2025.

They’re trading for less than $5 right now.

But thanks to Elon & Trump’s new alliance…

They could be off to the races in Trump’s first 100 days.

And right now for a limited time…

You can get the names & tickers for just $1 here. (AD)

10 Stock Picks FREE
 
 

Featured Articles from Trusted Partners:

🚀 One Stock Pick Could Change Everything in 2025
What if one stock pick could define your success next year? Get 10 expert-vetted stocks set for 2025—plus 5 bonus picks to watch now. Get the Report →

🆕 New Options Need New Trading Strategies
Zero-DTE options are the newest (and hottest) options to trade.  Professional traders have rushed into the market and are making a mint.  Don’t get left behind - learn all about these options, how to trade them, market setups to profit from, plus much more. Download now →

👀 Revealed: 3 Defensive Stocks for Your Portfolio
Worried about the market? This free report reveals 3 under-the-radar defensive stocks for uncertain times in any kind of economy.

 

 
 

FREE Report Download

 

Follow us on X, Follow us on Twitter