Foot Locker (FL), a global retailer of athletic footwear and apparel operating its stores in malls, is off 80% from its life time high of $36.62 (way back in 1990) and of nearly 60% from its 52-week high of $18.19 last September.
Today, options in Foot Locker are running seven-times the usual volume.
With earnings expected Wednesday, March 4, market participants have traded 2,638 FL March 7.50 Calls (FLCU), 70% on the offer. The trading represents 40% of total open interest and with open interest in the strike at 169 contracts, it is safe to assume that a majority of the action is opening buyers.
The stock is trading at $7.50, has $1.67 per share in cash minus debt worth 50 cents of ernings. The company announced its dividend last week and at the current price is paying a 8% yield.
The activity that appears to be bullish could be a play on its earnings, the announced dividend and/or Nike’s (NKE) earnings on March 18 a few days ahead of the March expiration.
Are these options players one step ahead of Foot Locker?
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