Trade: Shorted lululemon athletica

Shorted lululemon athletica (LULU) for the Opportunistic Portfolio mainly as a hedge for some short term over bought stocks. LULU also has a huge gap back to the $37 range so it provides a great opportunity for a stock likely to get whacked if the market sells off. The trade was made around $43.9 and any close above $44 would likely trigger covering this short.

Again nothing wrong with the company except being highly priced now at 30x earnings and wanting some hedge for a portfolio still levered at 1.5x.


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