Foot Locker Stock Falters Ahead of Earnings, Options Traders Chime in

Options are running at 2.9 times the usual daily volume

Deputy Editor
May 20, 2021 at 2:14 PM
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Foot Locker Inc (NYSE:FL) stock is sliding ahead of its first-quarter report, due out before the open tomorrow, May 21, in which analysts expect the company to report earnings of $1.05 per share. At last check, FL was down 4.8% to trade at $58.73. 

Today's drop has FL falling further from its May 18 two-year high of $66.71. However, the 60-day moving average, which has been a trendline of support since late August, appears to have stepped in to help contain today's pullback. Year-over-year, the equity sports an impressive 108% lead. 

FL 0520

Looking back at the last two years, only two of the last eight post-earnings sessions closed higher, painting a rather dismal picture. The security averaged a post-earnings swing of 8.7%, regardless of direction. This time around, the options market is pricing in a bigger move of 11.7%. 

Options traders have been targeting FL ahead of the event, with options running at 2.9 times the usual daily volume today. So far, 5,166 calls and 4,794 puts have crossed the tape. The May 62 call is the most popular, followed by the May 58 put, with new positions being opened at both.   

 

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