We have a net debit on Lululemon Athletica (LULU) from an ongoing spread position. I am recommending we initiate a new spread today, which will turn our net debit into cash in hand.
You can enter today’s spread even if you were not in the previous trade. Just be aware that we will be tracking it as an ongoing position.
If you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trade.
Current Stock Price: $423.20
Net Debit: $0.48
- Sell to open the LULU Oct Week One (10/1) 400 Put for around $1.56
- Buy to open the LULU Oct Week One (10/1) 390 Put for around $0.88
- Set initial credit limit at $0.68
Cash in Hand: $0.20