Lululemon Stock Eyes Worst Day Since 2020 After Earnings

Core Insights - Lululemon Athletica Inc's stock has dropped 19.7% to $265.71 due to fiscal second-quarter and full-year guidance that missed expectations, primarily attributed to tariff pressures [1] - The stock is experiencing its worst day since March 2020, reaching its lowest level since April and breaking below the $310 support level [2] - Year-to-date, Lululemon has lost 30% of its value, with short interest accounting for 5.4% of the equity's available float [2] Price Target Adjustments - At least 12 brokerages have reduced their price targets for Lululemon, with BMO making the most significant cut from $302 to $250 [1] Options Activity - Today's options activity shows 46,000 calls and 26,000 puts traded, which is 24 times the typical volume [3] - The most popular option is the weekly 6/6 260-strike put, with positions being opened ahead of expiration [3] Sentiment Indicators - Lululemon's put/call open interest ratio (SOIR) stands at 1.31, placing it in the 97th percentile of annual readings, indicating heightened pessimism among short-term options traders [4] - The company has historically exceeded options traders' volatility expectations, reflected in a Schaeffer's Volatility Scorecard (SVS) of 96 out of 100 [4]