2024-06-28 CALL at $307.5 Option on Lululemon Athletica

An 'In The Money' option is one with a strike price that the current stock price has already surpassed. Some options investors can hedge their Lululemon Athletica positions using in-the-money options. They may also want to buy options with some intrinsic value, not just time value. However, because in-the-money options on Lululemon Stock have intrinsic value and are priced higher than out-of-the-money options in the same chain, their volatilities are relatively smaller.

Lululemon Athletica's Option Greeks for the contract ending on 2024-06-28 at a strike price of 307.5 measures the various factors that affect its cost and calculated using a theoretical options pricing model. It helps investors make more informed decisions about whether to trade this option contract or when to trade it. In addition to Lululemon Athletica's option greeks, its implied volatility helps estimate the risk of Lululemon Athletica stock implied by the prices of the options on Lululemon Athletica's stock.

Buying Lululemon Athletica's call option is the simplest of option trades. A call option on Lululemon Stock gives investors the right (but not the obligation) to purchase Lululemon Athletica at the given strike price. Therefore Lululemon Athletica's call intrinsic value or payoff at expiration depends on where the Lululemon Stock price is relative to the call option strike price. The strike price of 307.5 is the critical point that divides the payoff function into two parts. Below the strike, the payoff chart is constant and negative (the trade is a loss). Above the strike, the payoff line is upward sloping as the option payoff rises in proportion with Lululemon Athletica's price. Finally, at the break-even point of 312.0, the line crosses zero, and trading Lululemon becomes profitable.

By selling Lululemon Athletica's call option, the investors signals his or her bearish sentiment. A short position in a call option written on Lululemon Athletica will generally make money when the underlying price goes down. Therefore Lululemon Athletica's call intrinsic value or payoff at expiration depends on where the Lululemon Stock price is relative to the call option strike price. The strike price of 307.5 is the critical point that divides the payoff function into two parts. Below the strike, the payoff chart is constant and positive (the seller makes a profit). Above the strike, the payoff line is downward sloping as the option payoff drops in proportion to Lululemon Athletica's price. Finally, at the break-even point of 312.0, the line crosses zero, and trading Lululemon becomes disadvantageous with no downside limits.

Lululemon Athletica's option chain is a display of a range of information that helps investors for ways to trade options on Lululemon. In general, an option chain provides a helpful tool for investors to see all available option contracts, both puts, and calls, for Lululemon. It also shows strike prices and maturity days for a Lululemon Athletica against a given expiration period. The table below combines all the option information in the form of a chain but before you use it, remember that it entails significant risk and it is not for everyone.

When running Lululemon Athletica's price analysis, check to measure Lululemon Athletica's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Lululemon Athletica is operating at the current time. Most of Lululemon Athletica's value examination focuses on studying past and present price action to predict the probability of Lululemon Athletica's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Lululemon Athletica's price. Additionally, you may evaluate how the addition of Lululemon Athletica to your portfolios can decrease your overall portfolio volatility.