Unusual Options Activity in SPRT, LULU and PTON

September 9, 2021

Leon Cooperman

I was 24 and working at Swiss Bank.

Trailing a senior manager. And learning the ropes

We walked into this very old and plain looking office in some nondescript Manhattan building.

It was quiet. Maybe 10 people (max) in the whole office.

Quiet doesn’t mean there was nothing going on.

We were inside the home of a very large Hedge Fund trading billions of dollars.

The receptionist led us in to meet the traders.

We shook hands while making small talk. 

And we waited.

After 5-10 minutes, the receptionist came back. “He’s waiting for you.”

We walked into the Hedge Fund Manager’s office.

All I can remember seeing is the stacks upon stacks upon stacks of paper in the room.

Floor to ceiling. Behind him. 

Around him. 

Around the chair I was sitting on.

Just stacks of paper!

It was incredible.

And all I remember hearing during that meeting is Leon Cooperman saying:

“You know how I come up with my ideas? I read. I read what no one wants to read. The Annual Reports and the Quarterly reports. And I mean the whole report. I read the fine print. You see all these papers. This is what I read. And among all these papers is my next big idea. That’s how I made all my money. I read.”

So, when Leon Cooperman talks… I listen.


1. Can SPRT Do it Again in Week?

2. LULU is Still Running at Full Speed 

3. Changing the Narrative Away From the Negative

Let’s get started...


Can SPRT Do it Again This Week?

SPRT Trade Idea

We mentioned the Unusual Options Activity in SPRT two weeks ago prior to the huge move.

What Does the SPRT Stock Chart Say?

SPRT Chart 090921

Part of the story was this September 10th shareholder vote.

Tomorrow is September 10th.

And the Unusual Options Activity in SPRT is picking up again.

SPRT Active Option Contract to Watch

Unusual Options Activity SPRT 090921

The SPRT September 10th $25 Calls are active ahead of this vote. They don’t come cheap unless you’re thinking north of $32. 

Get the popcorn ready for this one tomorrow.

Don’t forget, gamma works in both ways.


LULU is Still Running at Full Speed 

LULU Unusual Options Activity 090921

LULU stock crushed earnings and is well ahead of revenue targets for 2023. And it’s not just women wearing their clothing anymore:

"Chief Executive Calvin McDonald told analysts on an earrings conference call that the retailer will also double its men’s business and quadruple its international segment earlier than expected. It plans to offer new, long-term financial targets after the 2021 holidays."

The company even threw in the “supply-chain” excuse when it didn’t need the excuse. The read through = Demand for LULU products is off-the-charts!

The stock is up big here this morning.

What Does the LULU Stock Chart Say?

LULU Chart 090921

$434.23 is now a new all-time high for LULU stock. And the share volume is significant.

Look at the MACD. It hasn’t even turned up yet. 

These are very bullish indications.

With such a big move, I'm seeing significant options activity this morning.

LULU Active Option Contract to Watch

Unusual Options Activity LULU 090921

While there is a lot of unusual options activity on the Call side, much of it is Call Selling. The options flow is in the $420 Calls, the $430 and the $440 Calls, but the highest volume options for sale are the $450 Calls.

I suspect that they like LULU stock but may not be opposed to selling some shares a bit higher if it got there next week. 


Changing the Narrative Away From the Negative

PTON Unusual Options Activity 090921

So, PTON stock chose an interesting day to make this announcement:

PTON Announcement

Right when LULU stock was announcing their blockbuster earnings report, it seems like PTON stock wanted to ride their coattails and let everyone know they are getting serious in the hot Athleisure business.

They need something to counteract the slower demand, higher “recall” costs, and lax accounting.

Either way, PTON stock jumped nicely.

What Does the PTON Stock Chart Say?

PTON Chart 090921

It’s up 7%! 

But it’s still in the middle of that wide range between $80 and $125, with the 50dma pointing lower.

There's unusual options activity today on the downside ... and the upside that is worth a look.

PTON Active Option Contract to Watch

Unusual Options Activity PTON 090921

There's significant call options flow in the weekly options looking for follow through.

But I thought it was interesting to highlight the PTON October 22nd Calls that were sold 6,000x at around $2.05. 

Earnings are due the week after on the 28th.

This indicates that, without another formal announcement, a large investor is a seller of the stock near the top end of the range.

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