LULU earnings 12/10 @ 4:05pm

10 de dez. de 2020

LULU designs and retails athletic clothing for women, men, and female youth. Its apparel assortment, including items, such as fitness pants, shorts, tops and jackets, is designed for activities such as yoga, running and general fitness. The Company's fitness-related accessories include an array of items, such as bags, socks, underwear, yoga mats, instructional yoga digital versatile discs and water bottles. Lululemon athletica Inc. is based in Vancouver, Canada.
3rd Quarter October 2020 earnings announcement is tomorrow on 12/10 at 4:05pm
Earnings Whisper $0.95
Consensus: $0.86
Revenue: $1.01 Billion

LULU is showing bearish signals on rsi, volume ema and price action the past four days, plus it sure looks like a variation of a shrunken head and shoulders, lol. With that said, it's all going to come down to the fundamentals in the end. If there's anything short of a +$ earnings surprise, expect LULU to tank post market tomorrow. If, on the other hand, LULU pulls out stellar earnings, the share price could pop. Because I don't know what the earnings are going to be, I'm taking a bearish perspective with caution. End result range is between $340 - 400, which is quite an unhelpful spread to forecast LULU 12/11 price action, so a low risk 4-option strategy could be best. What I have in mind is buy $370 straddle 12/18 (put = $1875, call = $1300, total = $31.75) and sell a $350-390 straddle 12/11 (put = -$7.95, call = -$4.85, total credit = -$12.80). One case scenario, LULU closes below $350 or above $390 on 12/11 and you receive a 2k credit, and because the original trade cost you $1895, you make $105 profit per contract (not a great gain, but no loss). Another scenario is LULU misses passing $350 on the down side or $390 on the up side on 12/11 and you've positioned yourself for all the price action next week by getting a straddle for -$1280 discount. And finally, the more likely scenario is you can liquidate the calendar spread 4-option strategy at any point in pieces as the price action permits. Do your own due diligence, your risk is 100% your responsibility. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny for a month it = $5,368,709. Good luck and happy trading friends...

*3x lucky 7s of trading*

7pt Trading compass:
Price action, entry/exit
Volume average/direction
Trend, patterns, momentum
Newsworthy current events
Revenue
Earnings
Balance sheet

7 Common mistakes:
+5% portfolio trades, risk management
Beware of analysts motives
Emotions & Opinions
FOMO : bad timing
Lack of planning & discipline
Forgetting restraint
Obdurate repetitive errors

7 Important tools:
Trading View app!, Brokerage UI
Accurate indicators & settings
Wide screen monitor/s
Trading log (pencil & graph paper)
Big organized desk
Reading books, playing chess
Sorted watch-list

Checkout my indicators:
Fibonacci VIP - volume
Fibonacci MA7 - price
pi RSI - trend momentum
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