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LULU Gets Enlightened

His Holiness is a Board Member

His Holiness is a Board Member

LULU reported earnings last night and smoked the numbers. They beat by 6c and guided higher for FY11-- not bad for a stock that just a week ago had broken key support and had everyone jumping on the short bandwagon based on the chart and deteriorating fundamentals.

The options board was pricing in about a 3 pt move either way. The stock closed near 36, so that was a move between about 39 and 33-- as I watch the chart we're currently at 39.40 so it seems to be a modest win for the vol buyers. I've got my own trade on, but it's a little more complex than that.

With a high short ratio and a bit of a gap, if the stock starts to overcome some resistance levels, it could retest its highs of the year. It's definitely a stock worth watching if retail ever puts her high heels back on.

by Steven Place

Steven Place is the founder and head trader at