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The Big 3: LULU, UPS, TOL
Youtube· 2026-02-11 18:00
Group 1: Lululemon - Lululemon has experienced a significant decline, down more than 13% year-to-date and over 50% in the last 52 weeks, indicating a bearish outlook [4][14] - The critical support level for Lululemon is around $160, which has been tested multiple times and is seen as a key threshold for future performance [6][10] - A proposed trading strategy involves buying an out-of-the-money put spread, specifically buying the 170 puts and selling the 160 puts for a $3.50 debit, targeting the bearish trend [7][31] Group 2: UPS - UPS has shown strong performance, up more than 20% year-to-date, despite facing challenges such as a lawsuit and driver issues [15][18] - The stock is currently in a bullish trend, having found a short-term bottom in the 80s, and the technical indicators suggest continued upward momentum [16][20] - A trading strategy involves buying a $5 wide call spread, specifically buying the 125 calls and selling the 130 calls for a $1.15 debit, capitalizing on the positive trend [19][21] Group 3: Toll Brothers - The homebuilders sector, including Toll Brothers, is facing headwinds such as high interest rates and elevated retail debt levels, which are not favorable for growth [27][30] - Despite these challenges, there is capital rotating into homebuilders, although this is viewed as a risky investment strategy [28][29] - A bearish trading strategy is proposed, involving buying the 150 puts and selling the 140 puts for a $2.80 debit, anticipating a downturn in the sector [30][31]