Subject: Re: Fallen knives compared
LULU down another 3.5% today and I gave in to temptation. Sold March 2027 $160 puts to give me the shares for $132 if put. That’s less than 11 times 2026 earnings guidance from the company.

The CEO selection should be done, and they may have made visible progress fixing their current product quality and inventory issues. In case shares are trading above $160 on expiration, I would make about 25% on the funds backing the put.

For what it is worth, more than half the women in my gym still sport the omega logo. I only occasionally see their newer competitors’ logos. I think their brand value still endures. And all the discounting in outlet stores, probably earned them a few new customers, who might have found their products too pricey earlier.