Call buyers returning to Foot Locker
The bulls keep running in Foot Locker as it prepares to report earnings at the end of this week.
optionMONSTER's Heat Seeker system detected heavy buying in the March 57.50 calls yesterday, with about 7,000 trading for $1.15 to $1.50. Volume was well above the previous open interest in the strike, showing that new positions were established.
That follows bullish activity in the March 55 calls cited on our InsideOptions Pro subscription service on Feb. 4 . Those contracts have since risen in value by more than 40 percent .
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall. (See our Education section)
FL rose 0.5 percent to $56.44 yesterday. The stock gapped down on Jan. 13 after a downgrade by Credit Suisse but bounced at its 200-day moving average and has been working its way higher since. The shoe retailer is scheduled to announce quarterly results before the market opens on Friday.
Total option volume in the name reached 9,800 contracts yesterday, more than 6 times its daily average for the last month. Overall calls outnumbered puts by 5.5 to 1, a reflection of the session's bullish sentiment.
More From optionMONSTER
