Foot Locker, Inc. (NYSE:FL) stepped into the earnings confessional this morning to announce a third-quarter earnings and revenue beat, as well as a rise in comparable store sales. What's more, the company raised its full-year sales and profit forecasts amid strong demand for its footwear.
At last check, FL is up 10.9% at $36.68, and earlier surged to its highest level since September. The shares are also eyeing their best day since Aug. 19, as they build off yesterday's 5% win. Quarter-to-date, Foot Locker stock has added 18.9%, though it's down 15% in 2022.
Options traders are blasting the equity, with 12,000 calls and 12,000 puts traded so far today, or 15 times the average intraday volume. The 11/25 37.50-strike put is seeing the most activity by far, followed by the 37.50-strike call in that weekly series, with positions being opened at both.
The options pits have been much more bearish than usual in the last two weeks. This is per the security's 10-day put/call volume ratio of 4.33 over at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than all readings from the past 12 months.
Analysts are on the fence, with 14 of the 15 in coverage carrying a tepid "hold" rating, which leaves ample room for upgrades going forward. An unwinding of short interest could also boost the shares -- short interest has added 19.2% in the two most recent reporting periods, and the 8.86 million shares sold short make up 9.7% of the stock's available float.
It's also worth noting the FL's Schaeffer's Volatility Scorecard (SVS) stands at an elevated 83 out of 100. This means the equity has exceeded options traders' volatility expectations during the past year.
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