2024-06-28 PUT at $327.5 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 327.5 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.

Put options written on Lululemon Athletica grant holders of the option the right to sell a specified amount of Lululemon Athletica at a specified price within a specified time frame. The put buyer has a limited loss and, while not fully unlimited gains, as the price of Lululemon Stock cannot fall below zero, the put buyer does gain as the price drops. So, purchasing a put option on Lululemon Athletica is like buying insurance aginst Lululemon Athletica's downside shift.

By selling Lululemon Athletica's put option, the investors signal their bearish sentiment. A short position in a put option written on Lululemon Athletica will generally make money when the underlying price is above the strike price. Therefore Lululemon Athletica's put payoff at expiration depends on where the Lululemon Stock price is relative to the put option strike price. The breakeven price of 308.4 is the critical point that divides the payoff function into two parts. Below the breakeven price, the payoff is dropping and negative (the seller makes a loss). Above the breakeven price, the payoff line is upward sloping as the option payoff increases in proportion to Lululemon Athletica's price. Finally, at the strike price of 327.5, the payoff chart is constant and positive.

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.