Q2 STOCKS TO BUY

Options Traders Rush Foot Locker Stock After Earnings

FL options volume is running at 27 times the intraday average

Deputy Editor
Feb 25, 2022 at 10:34 AM
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Foot Locker, Inc (NYSE:FL) stock is plummeting today, last seen down 26% to trade at $30.64, after the athletic apparel and shoe retailer's trip to the earnings confessional. While the company reported fourth-quarter earnings and revenue that topped analysts' expectations, its full-year profit and comparable-store sales outlook were weaker than expected, with Foot Locker citing changes in its vendor mix and a decline in fiscal stimulus.

On the charts, FL has struggled for the last nine months, losing 53.2% in that time frame. The security tested a floor at $40 multiple times lately, but is now set for its lowest close since July 2020. Longer term, Foot Locker stock is off 44.1% year-over-year.

Options activity is running rampant in response to the equity's plunge. So far, 6,124 puts and 4,243 calls have crossed the tape, which is a 27 times the amount typically seen at this point. Most popular by far is the weekly 2/25 30-strike call, followed by the weekly 3/4 25-strike put, with new positions being opened at both contracts. 

 

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