Lululemon Stock Set to Extend Losses Amid Proxy Battle

Core Viewpoint - Lululemon Athletica Inc's stock is experiencing a decline despite a price-target increase from J.P. Morgan Securities, indicating underlying challenges in the company's performance and market sentiment [1]. Group 1: Stock Performance - Lululemon's shares are down 2.2%, trading at $197.50, marking a third consecutive loss amid sector weakness [1][2]. - The company has a year-over-year deficit of 46.7% and is falling below the critical support level of $200, which had previously contained pullbacks since late December [2]. Group 2: Market Sentiment and Options Trading - Options traders are showing a bullish sentiment, with a 50-day put/call volume ratio of 1.78, ranking higher than 86% of readings from the past year, suggesting potential headwinds if this optimism unwinds [3]. - The options appear affordable, with a Schaeffer's Volatility Index (SVI) of 36% in the 10th percentile over the last 12 months, indicating low volatility expectations [4]. - Lululemon's Schaeffer's Volatility Scorecard (SVS) is high at 96 out of 100, suggesting the stock has historically exceeded options traders' volatility expectations [4].