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

Options are running at 2.9 times the usual daily volume

Assistant Editor
May 20, 2021 at 2:14 PM
facebook twitter linkedin


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.   

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

Schaeffer's Investment Research Master Portfolio Trial
 


 


 
Special Offers from Schaeffer's Trading Partners