$LULU daily pick: sell Nov 20 $90 cash-secured put

$LULU: I'm selling the Nov 20 $90 put and getting paid to wait on Lululemon.

As of midday today ($96.94):
30% below the 200-day and 57% off the December high
Credit $1.79 for ~2% in 32 days (~23% annualized)
Breakeven $88.21 sits under the $90.38 October low
About 10x this year's EPS estimate with a 12% free cash flow yield and almost no net debt

I think most of the bad news is in the price because they've already cut guidance twice and a new CEO just took over while the business still throws off cash.

Would you take $179 to wait at $90 or stay away until the new CEO shows something?

Not financial advice

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Why a put and not shares? Sales are still shrinking. Revenue fell 4% last quarter, Americas comps were down 12% and they guided Q3 revenue down 10% to 11%. I don't want to guess the bottom with shares so I'd rather get paid while it bases. Owning it at $90 is fine with me.

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Don't have $9k sitting in cash? Defined-risk version: sell the $90 put and buy the $80 put for about $1.39 credit. Max risk $861 and breakeven $88.61. Smaller check but you lose the full $861 if it's under $80 at expiration.

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What invalidates it: a weekly close under the $90.38 October low. Then the base is broken and I'd rethink size. Earnings are around Dec 10 so the Nov 20 put expires before the print. The Street is mostly Hold with a ~$98 target so nobody's cheering yet.

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What I'd watch: what new CEO Heidi O'Neill (ex-Nike) says about product and the US business. Estimates still have EPS dipping next year (~$8.44 vs ~$9.61 this year) so the cheap multiple needs sales to stop falling. A close back above the 50-day near $106 tells me the sellers are tired.

Sources: FMP: $LULU quote, estimates, key metrics and price history · Robinhood: $LULU live quote and Nov 20 2026 $90 put chain · CNBC: Lululemon Q2 2026 earnings, comps -9%, guidance cut (Sep 3) · Reuters: Lululemon cuts outlook again, to-do list for new CEO (Sep 3) · Finviz: Americas comps -12%, Q3 and FY26 guidance (Sep 4) · Motley Fool: LULU closes at $100.61, down 17.38% (Sep 4)

Not financial advice. For informational and educational purposes only.