Lululmon – Sold PUT Options

Lululemon’s market price has swung from a high of $215 back in January of 2026 to a low of $105 on June 22nd 2026. The company is reporting strong gross profit margins exceeding 50% and is still projected to have sales of about $11.5 billion at the close of its fiscal year 2027. Lululemon is earning more than $12 per share and trading at less than 10x earnings. Yet the market is treating this company like it has leprosy. The simple truth is that this is a solid company with a book value of more than $47 per share, a debt-to-equity ratio of 70% (a very positive relationship), and free cash flow of $900 million. The core financial metrics are solid. There is no doubt this is a solid value investment.

The Value Investment Fund sold 300 PUT Options in the afternoon of June 29th to take advantage of the depressed market price and the very high market price for a $100 strike price terminating on March 19, 2027. The Fund currently holds an active position with Lululemon of 300 shares purchased at $161 each, including transaction fees. The Fund has reset the sell price point to $210 per share. The Facilitator believes that once the market recognizes the financial metrics for what they are, the market price will quickly recover, and exercising the PUT options will be a moot issue for the Fund.

 

Total earnings from the sale of 300 PUT Options at $11.05 is $3,015 after paying $300 of fees to conduct the transaction. Act on Knowledge.