How Option Pit Founder Sebastian Is Playing Lululemon

The video discusses the current earnings season, highlighting the market's low expectations and potential for better-than-expected results. It examines the Russell 2000's performance, noting its strength in financials and oil, and its role as a market indicator. The video also analyzes Lululemon's stock, emphasizing its recent highs and the trading strategy of buying calls to capitalize on potential stock rallies.

What is the market's general expectation for the upcoming earnings season?

• Earnings will remain unchanged.

• Earnings will be worse than expected.

• Earnings will be significantly lower than last year.

• Earnings might be better than expected due to low guidance.

What is the significance of the Russell 2000 index's recent performance?

• It shows that financials and oil are weak.

• It suggests a new trend in small caps.

• It has no impact on market rallies.

• It indicates a potential market downturn.

How does the Russell 2000 index's role as a leader or laggard affect market rallies?

• Leader role causes rallies to last.

• Laggard role causes rallies to last.

• Laggard role has no effect on rallies.

• Leader role causes rallies to fade.

What strategy is being observed among option traders in Lululemon's stock?

• Selling calls while holding stocks.

• Buying puts and selling stocks.

• Selling stocks and buying calls.

• Buying stocks and holding calls.

What is the predicted target for Lululemon's stock based on the analysis?

• $150

• $250

• $180

• $200