Options/LULU

LULUlululemon athletica inc.

Options Analysis Report•APPAREL & OTHER FINISHD PRODS OF FABRICS & SIMILAR MATL

Market Cap $13.7B|NASDAQ

● 2026-08-28$120.81

BEARISH

Analysis: 2026-08-27 EOD data

1Y -40.3%YTD -42.7%7D -0.2%

Options Vol

36,955

30D

Implied Move

±17.8%

IV Rank

34%

LULU Options Overview

IV is elevated with unusual activity. Conditions favor premium sellers.

REWARDS

RISK ANALYSIS

Snowflake Analysis

Favorable conditions for premium sellers

Learn

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LULU Gamma Walls

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LULU Hedge Radar

Neutral

Full Hedge Radar

Neither score is at an extreme today. Neither axis is a forecast — this is where LULU sits on protection cost vs. fragility today.

Protection is priced in the fair band (5.65) — near-dated vol is priced 68% above far-dated, and downside puts carry 0.1 IV points more than at-the-money, measured against this name's own rolling 20-trading-day realized moves (484 overlapping windows). Fragility reads fragile (7.17): it is trading 9% below its hedge wall on a wall graded HIGH for reliability, and its realized-vol regime is stable.

Protection cost

5.65/ 10fair

Basis: cross_sectional

Fragility

7.17/ 10fragile

Basis: per_ticker

Value

Is IV priced right?

3.0

ExpensiveCheap

Measures whether options are cheap, fair, or rich relative to historical and peer

levels.

Risk Checks4/9 checks passed

IV Rank

≤35%

IV Rank 95.0% — elevated vs history

IV/HV Ratio

<1.05x

IV/HV 1.49x — IV premium over HV

Sector Relative≤50%

Sector percentile 94% — above sector median

Term Structure

<1.1x

Front/Back 1.68x — backwardation

Skew Normal

<1.25x

Put/Call IV 1.16x — elevated

Absolute IV

<80%

ATM IV 58.1% — normal range

Spread-Adjusted Value

<80%

Effective IV 74.0% (ATM 58.1% + spread 7.9% + bias) — fair

Execution Efficiency

<3.0%

Total drag 13.31% (spread 7.94% + slippage 5.37%) — high friction

Vega Efficiency

≥5.0

Vega efficiency 11.44 (vega 9.085 / spread 7.94%) — efficient

Sentiment

Bullish or bearish?

3.3

BearishBullish

Analyzes

put/call ratios

open interest skew

, and flow direction to determine market bias.

Risk ChecksVery Bearish - Moderate signal (Conviction: -32%, Raw: -19%)

Flow Direction

|net sentiment| ≥25%

Conviction-weighted: -32% (strong bearish) — Raw: -19%

OI Skew Magnitude

≥15%

|OI skew| 13.5% — balanced

Volume-OI Alignment

Same sign, |vol skew| ≥10%

Vol skew -42.4%, OI skew +13.5% — divergent (opposite)

Conviction Quality

≥2/3 conditions

0-DTE 20%, far-OTM 15%, avg DTE 30

OI Momentum

|change| ≥3%

OI change +0.0% (5d) — stable

Smart Money Flow

|weighted flow| ≥20%

ITM: -46%, ATM: +6%, OTM: +10% — strong bearish (ITM/ATM divergent)

Sector Relative≤40% or ≥60%

Sector P/C percentile 88% — very bearish vs sector

Activity

Unusual activity?

5.6

QuietActive

Detects volume surges,

block trades

, and unusual options activity that may signal moves.

Risk Checks3/8 checks passed

Volume Surge

≥1.5x

Volume 1.5x avg — normal

Turnover Rate

≥15%

Vol/OI 9.4% — normal turnover

Multi-Day Persistence

≥2 days

1 day(s) elevated — may be one-day event

OI Build

≥5%

OI change -1.6% (5d) — stable

Sector Relative≥60%

Sector activity percentile 80% — very active vs sector

Trade Quality

≥30%

Large trade volume 50% — heavy institutional

Execution Urgency

≥60%

Aggressive execution 26% — patient

Flow Conviction

≥30

Conviction -32 (bearish) — moderate

Liquidity

Can I trade efficiently?

4.7

IlliquidLiquid

Evaluates

bid-ask spreads

, volume depth, and open interest for trade execution quality.

Risk Checks4/8 checks passed

Tradeable Spread

≤5.0%

Spread 7.9% — wide

Adequate OI

≥10,000

OI 392,732 — deep

Active Volume

≥500

Volume 36,955/day — active

Reasonable Cost

≤$0.50

$0.40 to cross — cheap

Strike Coverage

≥5 strikes

0 liquid strikes — limited options

Sector Relative≤40%

Sector spread percentile 94% — much wider than sector

Order Book Depth

≥100 contracts

Depth 126.7 contracts (bid:55.0 ask:71.7) — adequate

Execution Quality

<1.0%

Avg slippage 5.37% — poor

Timing

Is now a good time?

7.9

RiskyFavorable

Considers earnings proximity,

time decay

, and event calendar for optimal entry timing.

Risk Checks8/9 checks passed

Term Structure Clarity

|slope| ≥5%

Slope +68.4% — backwardation

IV Percentile Clarity

<30 or >70

IV percentile 95% — seller opportunity

Event Detection

≥10pts kink

IV kink 30.4pts — event priced

Theta/Vega Clarity

<0.5 or >2.0

θ/ν ratio 40.18 — favors income trades

Expiration Distribution

≥3 expirations

5 liquid expirations — flexible

Event Risk

≥60% (safe)

caution advised: Earnings in 6d (elevated risk)

Spread Momentum

<1.2 ratio

Spread ratio 1.00x — stable

Flow Momentum

≥25% strength + ≥50% consistency

Flow -32% @ 66% consistency — moderate (bearish)

Smart Money Timing

≥40 composite score

Score 80 (ITM 20% + inst 50%) — HIGH institutional

Directional Strategy Fit

Option Buyers

Long Calls4.1

bullishIV expensive, bearish flow

Long Puts5.3

bearishIV expensive, bearish flow

Premium Sellers

Cash-Secured Put5.4

bullishIV rich premium, bearish flow

Covered Call6.7

bearishIV rich premium, bearish flow

For educational purposes only. Not investment advice.

Earnings · week of Aug 31

Options price a ±10.2% move into LULU's Sep 3 earnings

LULU reports on Thursday, September 3 after the close. The at-the-money straddle covering that report prices a ±10.2% move — roughly $108.49 to $133.13 from $120.81. LULU has averaged ±13.0% on its last 6 earnings reactions (biggest: 20%), so this print is priced at 0.8× its own history.

CAN RUN MOREimplied ±10.2%history ±13.0%Sep 4 expiry

See the implied move for every US stock reporting the week of Aug 31

Implied move = the live at-the-money straddle for the expiry covering the report (Sep 4); it shifts intraday. Historical move = the average of LULU’s own 1-day earnings reactions over its last reported quarters — a reference, not a forecast.