Lululemon Athletica ended the session with a closing price of $103.19, rising 2.56%.
LULU options activity was highlighted by a single large bullish put spread carrying a net credit of $5.53 million. The structure involved selling deep in-the-money puts for 2027 and buying lower-strike puts for 2028, indicating a premium-collection mindset. The absence of bearish block trades reinforces a measured confidence that further downside may be limited in the medium term.
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Options Indicators
LULU’s implied volatility is 44.05%, while its IV percentile stands at 25.10%, which places current volatility toward the lower end of its recent range. In other words, although the absolute IV level is not low in isolation, relative to its own history the options market is pricing contracts rather cheaply, indicating subdued implied volatility conditions. The IV/HV ratio of 0.57 further suggests implied volatility is running below historical realized volatility, reinforcing the view that current option premiums are relatively inexpensive rather than stretched.
The Call/Put volume ratio is 1.14.
Large Trades
A bullish put spread with a net credit of $5.53 million stood out as the key large trade in LULU, created by selling 1,600 Dec. 17, 2027 $170.00 puts and buying 1,600 Dec. 15, 2028 $120.00 puts. This is a spread strategy rather than a synthetic position, and the trade was established for premium collection via a net credit, signaling a directional bullish stance with defined downside protection. With LULU referenced at $103.19, both put strikes are in the money, which suggests the trader is expressing confidence that the stock can stabilize or improve over time while limiting deeper downside exposure through the long lower-strike put.
Overall, the large-trade flow in LULU is clearly bullish. The only notable block was a premium-collecting bull put spread, which points to a constructive outlook rather than outright fear of further downside, and the use of a defined-risk structure suggests the trader is willing to lean bullish while still respecting volatility and downside risk.
Strategy Reference
For sellers seeking a low assignment probability, short puts below $80.00 may be preferable given current implied volatility and the stock’s recent stabilization above $100.00, while traders wanting to avoid the margin requirement of a naked put could consider a bull put spread such as selling the $95.00 put and buying the $80.00 put in the same expiration.
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