LULU - Q2 Earnings ExpectationLululemon had an incredible rally last week heading closer into earnings but sold off about 13% from the top. There was support found around the $346 level. We suspect that this is just a pullback.
We played the run up last week luckily took profit on our short term 2 day swing trade.
We are still bullish heading into Q2 earnings report.
WHY?
Ecommerce. Q2 was one of the best times for digital advertising. CPM on any major ad platforms were as low as 2017 and it was easy for many brands to scale their businesses online.
LULU as one of the leading retailers might surprise a lot of investors with an incredible earnings beat. We'll have to see if their online sales were able to overcome physical store closures.
Due to risk of volatility we're holding onto OTM calls expiring in OCT/NOV 2020.
Good luck traders.
*NOT A FINANCIAL ADVICE, THIS IS JUST OUR PERSPECTIVE AND WE DO NOT RECOMMEND ANY TRADES WE PUBLISH ON OUR CHANNEL. YOU WILL LOSE MONEY.
