LULU Jul17'26 120/140 Call Spread
LONG CALL SPREAD / catalyst 2026-06-25
2026 annual meeting / contested proxy vote
LULU proxy fight creates a dated upside convexity setup into the June 25 vote.
The company filed definitive proxy materials and the June 25, 2026 vote date is now the hard catalyst. Same-day price action remains inside the no-chase window, and options exist through the vote.
Enter while LULU < $127 and spread debit <= $7.60, preferring limit near $6.90 mid; same session or next regular session only if still inside no-chase and debit limits
$7.60 per spread (debit paid); shadow thesis stop on underlying close below $112 or 50% spread premium loss
Max loss: $7.60 per spread (debit paid); shadow thesis stop on underlying close below $112 or 50% spread premium loss. Time stop: 2026-06-26. Profit take: Underlying $132-$138, spread +80-100%, or settlement/vote-support pop before annual meeting. Take profit if LULU trades $132-$138 before the vote or the spread gains roughly 80-100%. Close by June 26 if the vote/settlement path does not produce follow-through. Exit immediately if the source read changes from governance catalyst to reputational noise.
The written profit target was reached and the position closed automatically.
A dated catalyst paired with a defined-risk option expression produced asymmetric upside. This trade is evidence, not strategy validation.
Selection policy: Up to four closed, executable paper decisions: best convex winner, best linear winner, worst loss, and latest close. Duplicates are removed and the newest eligible trades fill empty slots.