NEW YORK, December 31, 2025, 19:49 ET
- A Trefis note outlined a put-options trade targeting roughly a 10% annualized yield while waiting to buy Lululemon at a lower price.
- A TheStreet Pro note flagged Lululemon’s forward valuation as below the S&P 500’s multiple, citing Birinyi Associates.
- Zacks said SM Energy has been among its most-searched stocks, while earnings estimates for the quarter moved lower.
A new options trade pitch targeting about a 10% annualized return is putting Lululemon Athletica back on investors’ screens as the stock trades far below its highs.
The setup matters now because investors are trying to balance two competing forces: bargain hunting after sharp drawdowns and the appeal of cash-like returns that can be earned while waiting.
It also shows how options — once mainly the domain of professionals — are increasingly being used as a “paid waiting” strategy, especially when shares are volatile and valuations are in focus.
Trefis said Lululemon (LULU) was trading around $210.67 a share and about 50% below its 52-week high, and outlined selling a put option with a $150 strike expiring Dec. 18, 2026. The note said the seller would collect about $940 per contract and, combined with a roughly 4% yield on cash held aside, target a total yield of about 10.5%.
A put option gives the buyer the right to sell shares at a set price by a set date. Selling that put collects a premium upfront, but it can obligate the seller to buy shares at the strike price if the stock falls below it.
A separate TheStreet Pro note said Lululemon now trades at about 16.3 times 12-month forward earnings versus about 22.3 times for the S&P 500, citing Birinyi Associates.
Lululemon has been caught between slowing demand in parts of the U.S. and intensifying competition in athletic and lifestyle apparel, a category dominated by global players and a growing list of newer brands.
The company is also heading into 2026 with fresh governance pressure. Lululemon founder Dennis “Chip” Wilson, in U.S. proxy materials filed on Dec. 30, said, “It is clear to the world that lululemon is special, but in need of change,” as he backed director nominees for the 2026 annual meeting. Streetinsider
A proxy fight is a campaign to persuade shareholders to vote for board changes, often raising uncertainty around leadership and strategy — and sometimes increasing short-term volatility in a stock.
In energy, SM Energy (SM) has been among the most searched-for stocks on Zacks.com lately, Zacks Equity Research said. Zacks said SM shares returned -3.8% over the past month versus a +0.8% change for the Zacks S&P 500 composite, while its U.S. oil-and-gas exploration and production industry group fell 3.7%.
Zacks said SM was expected to post quarterly earnings of $0.89 per share, with the consensus estimate down 4.8% over the last 30 days, and it rated the stock a Zacks Rank #3 (Hold). Zacks also said SM carried a Value Style Score of “A,” indicating it trades at a discount to peers. Finviz
The mix of option-income pitches, valuation debates and online search spikes underscores how investors are starting 2026 by leaning on screens and short-term signals — while keeping an eye on entry prices in beaten-down names.
