NEW YORK (TheStreet) -- MKM Holdings Derivatives Strategist Jim Strugger appeared on BloombergTV's "Bloomberg Markets" with Vonnie Quinn on Monday afternoon to talk about athletic apparel retailer Lululemon.  (LULU) - Get Lululemon Athletica Inc (LULU) Report

Shares of Lululemon are up 50% year to date, according to Strugger and the company's 2016 second quarter financial results are due out before the market open on Thursday. Strugger is expecting a "solid report" with focus on comps and gross margin.

Analysts surveyed by Thomson Reuters are expecting Lululemon to report earnings of 38 cents per share on revenue of $514.86 billion for the most recent quarter. Lululemon reported earnings of 34 cents per share on revenue of $453.01 billion for the same period last year.

"Ultimately, even if they meet comps we think the stock might sort of be a head of itself a little bit," Strugger said. "So here is a case where we want to take down a little bit of risk, sellout some of this long stock and replace it synthetically with call spread."

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Shares of Lululemon closed lower on Monday.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate LULULEMON ATHLETICA INC as a Buy with a ratings score of B-. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, solid stock price performance and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: LULU

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