Quant Signals V3LULU Weekly Signal — Contrarian Call Play

LULU Weekly Signal | 2025-12-09

Instrument: LULU
Direction: BUY CALLS (Contrarian)
Confidence: 58% (Low conviction)
Expiry: 2025-12-12 (3 days)
Strike Focus: $180.00
Entry Range: $11.75 – $12.45 (Mid: $12.10)
Target 1: $14.80 (+25%)
Target 2: $16.65 (+40%)
Stop Loss: $9.50 (-20%)
Position Size: 2% of portfolio
Weekly Momentum: NEUTRAL (+0.22% 1W)
Options Flow: Bearish (PCR 2.61 → heavy put buying, contrarian opportunity)
Max Pain: $180.00

Analysis Summary

Katy AI Prediction: Gradual upward movement to $184.45 by expiry (+0.96%)

Technical Analysis: Price near weekly highs, VWAP $184.73, resistance $185, support $180

News Sentiment: Neutral, Telsey Advisory maintains $200 target (+9.5%)

Risk Level: MODERATE — low conviction trade; tight stop recommended

Competitive Edge: Contrarian call vs extreme put flow; aligned with Katy AI upward bias

Key Notes

Low conviction trade — monitor closely

3-day expiry → time decay risk

PCR 2.61 indicates bearish sentiment — opportunity for short-term upside