OPTIONS FLOW$LULUlululemon athletica inc.Open ticker analysis →
$4.58M moved through lululemon athletica inc. ($LULU) options on Tuesday in a 2-leg trade built around the $85 to $180 strikes. The legs lean bearish: the bought side profits as lululemon athletica falls, and the sold side helps pay for it.
What happened
The legs printed together midday, around 11:30 a.m. ET on Tuesday, October 27, with $LULU near $103.64, for $4.58M in combined premium across 5,000 contracts.
Trading the legs as one ticket locks in the price of the whole structure at once, which is how professional desks usually put on spreads.
Netting the legs, the trader paid about $1.01M to put the position on. The sold legs mean the risk does not stop at that debit if the stock moves hard against them.
- LULU Jan 21, 2028 $85 Put: 2,500 contracts at $11.19 (bought)
- LULU Jan 21, 2028 $180 Call: 2,500 contracts at $7.14 (sold)
Why it matters
A risk reversal buys one side and sells the other, using the premium from one leg to pay for the other. It is a directional view financed with the opposite option.
Net of all legs, the structure behaves like being short roughly 126,600 shares of LULU, about $13.12M of stock exposure.
The strikes run from $85.00 (18% below the stock) to $180.00 (73.7% above the stock), so the trade is built around a zone rather than a single target.
With 451 days until Jan 21, 2028, this is a long-dated position measured in years, the kind of trade built around a thesis rather than the next headline. Implied volatility ran around 50%, elevated, which means traders are paying up for movement.
The numbers
| Structure | Risk reversal (2 legs) |
|---|---|
| Lean | Bearish |
| Expirations | Jan 21, 2028 (nearest in 451 days) |
| Strikes | $85, $180 |
| Contracts | 5,000 |
| Total premium | $4.58M |
| Net cost | $1.01M debit |
| Stock at the trade | $103.64 |
Three ways this could play out
Bullish continuation
A move through $180.00 puts $LULU above every strike. For a structure leaning bearish, that is the worst case.
Bearish rejection
A drop under $85.00 takes $LULU below every strike. That is where this bearish structure pays the most.
Neutral stabilization
If $LULU settles between $85.00 and $180.00 into Jan 21, 2028, time decay and the final price decide who wins, which is exactly what spreads are built to control.
What to watch next
- $85.00 and $180.00: the outer strikes that define this trade.
- Open interest on each leg in the next session, to confirm the structure was opened rather than closed.
- Jan 21, 2028: expiration, 451 days out for the nearest leg, when the structure resolves.
- Follow-on spreads at nearby strikes, which would show a desk building a larger position.
