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Best Options Strategy for ULTA

By Dennis Bosmans · Updated 2026-08-26 · 2 min read · Risk disclaimer

Looking for the best options strategy for Ulta Beauty (ULTA)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live ULTA option chain right now, and a simple map from your view on ULTA to the strategy that fits it. Model any of them in the calculator before you trade.

About ULTA

Ulta Beauty (ULTA) is a major company in beauty retail. Options traders on ULTA tend to watch same-store sales, consumer spending and earnings, since these can drive large moves in the share price.

ULTA for options traders

Ulta Beauty occupies a distinctive corner of consumer discretionary: a specialty beauty retailer whose results hinge on shifting consumer spending habits, competitive encroachment from rivals rolling out beauty shops-within-stores, and the premiumization or trade-down cycles that run through the beauty category. That sensitivity translates directly into options pricing — IV on ULTA tends to run structurally higher than many comparable large-cap retail names, reflecting the market's recognition that the stock can reprice sharply when expectations around traffic, basket size, or margin guidance change. Options liquidity is adequate for mid-cap single-name trading, with reasonable open interest concentrated in near-term and quarterly expirations.

Earnings are the dominant IV catalyst: same-store sales growth, loyalty programme metrics, and full-year guidance revisions regularly produce outsized post-announcement moves relative to the stock's quieter inter-quarter drift. Sector-level news — a large competitor accelerating its beauty footprint, shifts in prestige-versus-mass spending, or broad consumer confidence data — can also lift IV meaningfully between reports. Traders who anticipate a large binary move around earnings often use long straddles or strangles to stay direction-agnostic; those who believe the implied move is too rich frequently sell short strangles or iron condors to harvest the post-earnings IV crush. In calmer stretches, covered calls and cash-secured puts appeal to longer-term holders managing their cost basis.

Today's top-scoring strategy for ULTA

Our engine ranks defined-risk strategies on the live ULTA chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.

Bull Put Credit Spread bullish
Price: $538.73Implied volatility: 55%Expiration: 2026-09-25 (29d)
ActionQtyTypeStrikePremium
BuyPUT$390$1.04
SellPUT$470$9.25
P/L at expiry vs today At expiry Today ±1σ
$301$464$628
Max Profit
$821
Max Loss
−$7,179
Net Credit (received)
$821
Breakeven(s)
$461.79
Position Greeks
Δ
15.43
Γ
−0.255
Θ
30.63
ν
−32.59
Time decay (price held)
Implied-volatility skew

Simulation

Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.

Win rate
82%
Mean P/L
$89
Median
$821
Exp. move (1σ)
16%
5th pct
−$4,685
25th pct
$821
75th pct
$821
95th pct
$821

Strategy analysis

Simulated price paths (time × price)
now $539BE $462$412$550$6880d15d29d
$-7081$-3179$723

Greeks vs price

Δ — $ P/L per $1 move in the underlying (share-equivalent exposure).
Θ — $ P/L per day from time decay.
ν — $ P/L per +1% in implied volatility.
Γ — how fast delta changes per $1 move.

Price × volatility (today)

−30%−15%IV+15%+30%
$673$820$814$790$740$660
$646$818$802$758$680$567
$620$810$774$696$578$427
$593$787$710$583$415$222
$566$719$576$382$161−$72
$539$547$313$50−$218−$478
$512$168−$154−$466−$755−$1,017
$485−$555−$905−$1,209−$1,472−$1,699
$458−$1,713−$1,973−$2,187−$2,365−$2,517
$431−$3,240−$3,293−$3,343−$3,389−$3,435
$404−$4,840−$4,671−$4,546−$4,454−$4,387
Analyze ULTA in the calculator → Share this pick ↗

Illustrative example at ULTA's latest available price, computed with the same engine as the tool. Live option fills and the real IV skew refresh during US market hours.

Implied volatility

ULTA is currently trading with high implied volatility, which makes its options expensive — and attractive to sell. On the options we scanned that was around 55% implied volatility, and higher implied volatility means richer premiums and wider expected moves.

Options on ULTA currently price in about 55% implied volatility, versus roughly 37% the stock has actually realised over the past month. That makes options relatively expensive — an edge for strategies that sell premium, such as credit spreads and iron condors.

Off that volatility, the options market is pricing a move of about ±$83.89 (±16%) in ULTA by 2026-09-25 — a range of roughly $455 to $623. Strikes inside that band hold most of the premium and see most of the action.

Across strikes, downside puts on ULTA trade at a higher implied volatility than upside calls — the market is paying up for crash protection. That skew favours selling put spreads or buying calls over symmetric trades.

ULTA insider trading activity (SEC Form 4)

Open-market insider transactions at ULTA over roughly the last six months, from SEC Form 4 filings. Open-market buys are the rarer, more telling signal — routine selling under pre-arranged plans is common, so read a net-selling figure with that in mind.

Open-market buys
0 · —
Open-market sells
2 · $426K
Net (buy − sell)
−$426K
InsiderActionSharesValueDate
MRKONIC GEORGE R JRSell383$182K2026-06-15
MRKONIC GEORGE R JRSell452$244K2026-04-07

Source: SEC Form 4 filings via Finnhub. Open-market purchases (P) and sales (S) only — grants, option exercises, gifts and tax withholding are excluded. Informational context, not investment advice.

ULTA congressional trading (STOCK Act)

Recent ULTA stock trades disclosed by members of the US Congress under the STOCK Act. Lawmakers must report trades within 45 days; amounts are disclosed only as broad ranges, and a trade is not an endorsement — treat it as context, not a signal.

Recent buys
1
Recent sells
0
MemberChamberActionAmountDate
Ro Khanna (CA17)HouseBuy$1,001 - $15,0002026-07-07

Source: US House & Senate financial disclosures via Financial Modeling Prep. Amounts are the disclosed ranges. Informational context, not investment advice.

Earnings & IV crush

ULTA's next earnings report is due around August 27, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.

With earnings roughly 1 day out, ULTA's 55% implied volatility is inflated by event premium — and it usually collapses the moment results drop ("IV crush"). That rewards defined-risk premium sellers when the move stays muted, and punishes option buyers who paid the inflated price. Keep size small and risk defined through the report.

Key figures

Market cap
$21.2B
Beta (vs market)
0.85
52-week range
$443.60–$714.97 (35% up the range)
Short interest
5.4% of float · 4.0 days to cover

How to choose an options strategy for ULTA

Start with your outlook on ULTA, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:

Bullish

You expect ULTA to rise

Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.

Long Call → Bull Call Spread →

Bearish

You expect ULTA to fall

Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.

Long Put → Bear Put Spread →

Neutral

You expect ULTA to trade in a range

Sell an iron condor to collect premium while ULTA stays between two strikes, or write a covered call against shares you already own.

Iron Condor → Covered Call →

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How we pick the best strategy

For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →

Open ULTA in the free calculator →

Frequently asked questions

What is the best options strategy for ULTA?

It depends on your outlook. Bullish traders often use a long call or bull call spread on ULTA; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.

Are ULTA options liquid enough to trade?

Ulta Beauty (ULTA) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.

How much money do I need to trade ULTA options?

Buying a single ULTA call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.

Is this financial advice?

No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade ULTA or any security. Do your own research.

What does Ulta Beauty do?

Ulta Beauty (ULTA) operates in the Specialty Retail industry. The "About Ulta Beauty" section above gives a fuller picture of what the company does and how it earns money.

Does Ulta Beauty pay a dividend?

We don't show a confirmed dividend yield for Ulta Beauty here, so treat it as uncertain: before writing calls, check its current dividend and ex-dividend date with your broker — an approaching ex-dividend date can trigger early assignment on in-the-money short calls.

When does Ulta Beauty next report earnings?

Ulta Beauty's next earnings are expected around August 27, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.

Price trend

Short term · 1M
▲ +8.3%
Mid term · 3M
▲ +7.1%
Long term · 1Y
▲ +1.8%

Tickers related to ULTA

Comparing ULTA with similar names can help you choose the best options strategy:

ELFe.l.f. BeautyNKENikeLULULululemon

Company information

Headquarters
1000 Remington Boulevard, Suite 120, Bolingbrook, IL, 60440, United States
Industry
Specialty Retail
Employees
21,382
CEO
Ms. Kecia L. Steelman
Phone
630 410 4800
Website
www.ulta.com

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Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy · Terms.