Jim Strugger's Lululemon Options Trade

Speaking on Bloomberg Markets, Jim Strugger of MKM Holdings said that Lululemon Athletica inc. (NASDAQ: LULU) has some positive momentum and he suggested a bullish options strategy in the name.

Strugger thinks that it would be a good idea to buy the March 70 call and sell the March 80 call for around $2.50. The trade breaks even at $72.50 or 6.32 percent higher and it can maximally make a profit of $7.50 if Lululemon jumps 17.32 percent or higher. Strugger added that the company is not going to report earnings until March, but there might be some positive news from the ICR conference.