Foot Locker's been running higher, and traders are sticking with the name.
It was only Wednesday that readers of our premium InsideOptions Pro service received an alert about activity in the November 77.50s. Those calls have almost doubled already, and now the big money we followed is rolling to a higher strike.
optionMONSTER's Heat Seeker tracking system shows that 3,000 November 80 calls were purchased for $1.75 and 2,500 November 77.50s were sold for $2.60. Making the adjustment let the investor collect $125,000 and kept him or her exposed to further upside in the high-flying retailer.
Long calls lock in the price where investors can buy shares, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also result in significant leverage on a percentage basis, as we see today. (See our Education section)
FL is up 3.35 percent to $76.87 in afternoon trading and is up 37 percent so far this year. While the company has benefited from its own strong earnings, today's move into new record territory was spurred by blowout numbers at Nike.
Total option volume in FL is 11 times greater than average so far today, with calls outnumbering puts by a bullish 13-to-1 ratio.
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