As I’ve gotten older, I realize that there are lots of things that I forget and have forgotten.
For example, I don’t really remember if I used to enjoy looking at photos like this, or not.
If I did, I’m not certain that I remember why I liked it.
Looking at it, though, I do recall a few years ago when LuLuLemon had a little bit of a debacle with its sheer athletic yoga pants and that issue related to quality control took shares lower after an almost fairy tale kind of rise up until that point.
Again, looking at the picture, I don’t really recall if it demonstrates what was bad about the quality or what was good about the quality.
What I do, remember, however, is that as all of this was unfolding, the founder of LuLuLemon and its Chairman, at the time, made the unfortunate mistake of saying that not all people were meant to be wearing his company’s clothing.
Shares didn’t do too well after that either and eventually, that frequently outspoken Chairman and Founder found himself on the outside.
He still looks in, though.
After a nearly 20% decline following really poor guidance, Chip Wilson, the outspoken guy referred to, also had an opinion for UnderArmour.
At that point, I only owned UnderArmour shares.
He proceeded to call UnderArmour a “weak company.”
I checked the news archives and could find no instance of Under Armour’s CEO and Founder calling any of his prospective customer’s “too fat” to sport his clothing line.
Maybe Chip Wilson was right about the company, but I don’t have much doubt that if anything is weak, it’s the character of the one making the assessment.
Another thing that I do remember, though, is that it had been a long time since making a one day trade.
Although that’s not really accurate, as I almost forgot the McDonald’s position last month, which had been joined by LuLuLemon on Friday.
Those one day trades are usually the kind that come either after a really large loss or right before an ex-dividend date.
It was the latter in the case of McDonald’s and it was certainly the former for Friday’s LuLuLemon trade.
As with the McDonald’s trade, those hoped for one day trades have to be made with the mindset that it wouldn’t be the worst thing in the world if the one day turned into a week or if the week turned into a month.
In the case of LuLuLemon, if the shares had continued to fall, those premiums in the forward weeks would have been enticing enough to keep going with the positions.
Fortunately, though, it was just a few hours in return for a 0.7% ROI.
That’s not much, but it will pay for something.
In the meantime, I actually do hope that Chip Wilson’s words on Under Armour have a little staying power.
That’s because I sold some calls on Under Armour at a strike that was about 10% below my cost.
So at this point, to continue averting assignment at a loss, I either need to be able to continue rolling over the position, as was done this week, or see a price decline and expiration of the short calls.
For now, I don’t mind either of those possibilities, because I do also remember that I like to trade and I like to make money while doing it.
With most all brokerages dropping their trading fees, those trades get even easier to make and justify.
If I can make enough of those trades, I may be able to afford to get someone to model those LuLuLemon’s for me in various stages of stretch in order to see if anything jogs my memory or anything else.