Sine that initial call, Lulu shares gained about 7% through last Friday, versus a 4% total return of the S & P 500 and flat performance for Nike. Right now, the options market implies a about a $30 move in the stock price, higher or lower, by the end of this week. Rather than continuing to hold the stock, an investor looking for slightly less risk could use a stock substitution strategy through earnings. The trade: Stock substitution strategy A stock substitution strategy is an investment approach that uses options instead of directly holding shares of a stock. An options structure can also reduce the maximum potential loss if the underlying stock's price falls significantly.

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Persons: Lululemon, LULU, Lulu, Armour, LULU Jan Organizations: Nike, Adidas, VF Corp, CNBC, NBC UNIVERSAL Locations: Sine