Lululemon options analysis: defensive positioning ahead of earnings

Investing.com reports that the options market for Lululemon Athletica Inc (LULU) displays a slightly defensive stance ahead of the earnings release. On September 3, 2026, 60,152 options contracts were traded, indicating a moderate level of put-heavy positioning. The most significant structure in the options market is the $110 put/$130 call corridor.

Traders seem to be anticipating a substantial move, with a greater demand for downside protection. Notably, the $90 put traded 1,052 contracts, while the $100 put traded 2,244 contracts, against 1,902 open interest. The $110 put traded 1,571 contracts, against 1,741 open interest, while the $130 call traded 1,269 contracts, against 2,387 open interest.

This suggests a higher level of activity in the puts. However, without trade-level details, such as whether transactions were executed at the bid or ask, it remains unclear whether traders are taking new positions or closing existing ones. The three-month volatility has fallen by 0.62 percentage points to 48.25%, and the 90/110 skew has risen by 0.50 percentage points to 0.58.

Lululemon's earnings are scheduled to be released after hours on September 3, 2026, with a consensus EPS of $1.82 and revenue of $2.46 billion. The expiration date for these options is September 4, 2026, making this essentially a one-session reaction market. The overall sentiment leans bearish but only moderately, as the market appears more concerned about a disappointing outlook or guidance than merely missing the quarter.

The key levels to watch are $110 on the downside and $130 on the upside. A move beyond either of these levels would likely have a more significant impact than the comparatively elevated put volume itself. The current daily technical signal for LULU is Neutral, while the weekly signal remains Strong Sell, adding background pressure to the earnings outlook, but not providing a precise forecast.