Income Trade in LULU

[Steven Place]

After coming into a big level at 75, LULU broke out and had some nice relative strength today while the market sold off.

There’s a big resistance level coming up in the 80s, so it will most likely taper its gains as we rally into that level.

As earnings are already out of the way, we can look at an income trade:

The intent here is to scale in. That means we are putting on 1/3 size on the initial trade and will add if/when LULU moves enough.

Here is the initial trade:

 

We will adjust if LULU hits 73 or 80.50.

 

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