Options Traders Target Lululemon Stock on SPX Inclusion

LULU is trading at 18-month highs today

The shares of Lululemon Athletica Inc (NASDAQ:LULU) are surging today, after news that the equity will replace Activision Blizzard (ATVI) on the S&P 500 (SPX) later this week. At last glance, LULU was up 10.3% at $416.52, and trading at 18-month highs. Since the start of the year, the equity is up 30%. 

So far today, 42,000 calls and 42,000 puts have exchanged hands, which is five times the average daily options volume already. The October 420 call is the most popular, with new positions being opened there. 

The even distribution of calls and puts indicates a slight shift in sentiment, as calls have been much more popular than usual lately. This is per LULU’s 10-day call/put volume ratio of 1.95 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which tops all other readings from the past year. 

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