The U.S. equities market is taking a well-deserved breather today, as traders are likely taking some money off the table following the historic run experienced in October.

On a day like today where trading screens are a sea of red, relative strength plays are easy to spot. Essentially any stock that is still in the green is exhibiting relative strength or outperforming the market.

The rationale behind seeking relative strength goes something like this — if the stock is able to rise in a weak tape, it is all the more likely to lead in a strong tape.

One such stock exhibiting strength today is Lululemon Athletica (NASDAQ:LULU). Suppose we want to set ourselves up for a continued rise into year-end for this athletic apparel company. In July, LULU reached an all-time high just south of $65, so we can use that as our potential target.

Instead of buying the stock here in the $57 area, a cheaper, limited-risk way to play is by buying a bull-call spread. The potential risk is limited to the initial debit paid to enter the trade, and the max reward is limited to the width of the spread minus the debit.

One call spread worth considering for bullish exposure on LULU is the Dec 60-65 call spread. To enter the position, you would “buy to open” the LULU Dec 60 Call while at the same time “selling to open” the LULU Dec 65 Call.

If entered at around a $1.90 net debit (the long $60 calls are currently trading at $3.50 and the short $65 calls are currently at $1.60), the risk would be limited to $190, and the reward would max out at $310.

Source: MachTrader

At the time of this writing Tyler Craig had no positions in LULU.