Unless you’ve been living under a rock for the past few years, you are no doubt familiar with the popularity of “athleisure” wear.
Chances are you, or other members of your household, own items that fall into this category of clothing designed to be worn for exercise or lounging.
Lululemon (NASDAQ: LULU), one of the original “athleisure” brands famous for its high-end yoga gear, now offers a wide range of products including pants, tees, tanks, outerwear and backpacks — for women and yes… men.
Expansion into Men’s Wear
The company’s expansion into men’s apparel has helped boost sales growth. Management says they are ahead of schedule on their goal of reaching $1 billion in sales of men’s apparel by 2020. Lululemon also expects to hit $1 billion from online sales by 2020 thanks to investments in its e-commerce business, including the re-launch of its website.
LULU was up more than 50% in 2018, a clear standout in the retail sector, which overall logged an 8% decline last year.
Selling Options on LULU
And the stock has been a champ when it comes to selling options to capture rich premiums and cash income.
We traded LULU four times since the market began to crater last October…and every trade came up a winner.
October 15th…right at the beginning of the sell-off, we collected $490 on a LULU early November put option.
One day later, we traded LULU 138 Put again for $575 in only 9 days of trading.
On November 15th were at it again (right in the middle of the market madness), I still saw continued strength in Lululemon’s business and we sold a 135 Put for the end of November.
LULU got caught up in stock market carnage of December. We were forced us to roll our position 3 times into early January 2019. The market settled, LULU rallied and we exited the trade with $440 per contract of profit…over $2,200 of cash in less then 45 days!
One last trade…
We got the New Year started off on the right foot.
I recommended selling the LULU January 127 put for $176 and we bought the option back 6 days later for a nickel and a $855 profit.
So during the hardest market-sell off of the last 10 years…the worst December since the great depression 88 years ago…we sold put options on Lululemon stock 4 times. We hauled in over $4,000 of cash income…a 6% return on capital when the S&P was down 15% over the same period.
Get the picture…this is a company and a stock on a roll.
I see LULU as being “Amazon resistant” in the near term. That means we’re going to continue to trade the stock in my services throughout 2019.
We just got started trading and collecting regular cash income from Lululemon…care to join in the fun?
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About The Author
Michael Shulman is a 30 Year Veteran of the financial markets – as a trader, a financial analyst, a financial writer and most recently as an educator.
Michael made his first option trade in 1985 – COMPAQ Computer calls – a position that expired worthless. His second trade broke even; the third brought him a year’s salary, a near twenty to one return on his investment. He entered the financial publishing business formally in 2001 as director of research for ChangeWave Research’s institutional research business. He also was the senior writer and editor of Hedge Fund Investing.
Selling Options Expert
Since 2010, he has dedicated himself to teaching investors how to get more income from their portfolios using simple yet safe options selling strategies which produce income every week. This approach was developed from the ground up in Michael’s own accounts. His goal to develop a strategy that cannot be replicated by institutional investors of any size and therefore independent of fads and trends that change too often to provide a consistent approach for individual traders.
Michael’s trade recommendations in his Options Income Blueprint, Perpetual Income Portfolio Club and Income Masters services maintain a 98% success ratio producing the expected income 98% of the time. No one’s perfect.