Foot Locker will announce earnings this week
Retailer Foot Locker Inc (NYSE:FL) will announce its latest quarterly results before the open Thursday, May 29. The stock has been consolidating around the $24 level since its mid-May bull gap, which came after Dick's Sporting Goods (DKS) bought the company for $2.4 billion. Year to date, the equity is up 10.2%.

FL has a history of outsized post-earnings moves, averaging a next-day swing of 17.5%, regardless of direction, over the past two years. This time around, the options pits are pricing in a much smaller 2.4% move.
In the event of positive earnings results, a short squeeze could help give Foot Locker stock a lift. Short interest represents 16.1% of the stock's available float, or over three days' worth of pent-up buying power.
Meanwhile, if investors remain wary of earnings volatility, options look like a good way to go when weighing in on the stock. FL's Schaeffer's Volatility Index (SVI) of 23% sits in the low 10th percentile of its annual range, meaning options traders are pricing in low volatility expectations.