Foot Locker, Inc. FL
The markets took a beating yesterday, and we appear to be headed for another generally bearish session. On a normal day, we’d look for post-earnings plays that had a beat and were gapping up in the premarket. Today, we were looking for an earnings miss and a stock on its way down, and FL fits the mold.
The company’s Q4 earnings disappointed on sales and guidance and it appears that, coupled with current market conditions, a play on some puts may yield quick strike opportunities today. We’re going to zero in on the FL 03/16 $45-41 Puts.
iPath S&P 500 VIX ST Futures (ETN) VXX
As we said, another turbulent day for the markets could be headed our way to finish out the week, so we’re going to want to keep mostly to the bearish side of the street.
Much as the SPY trades with the market, the VXX trades inversely to it. Instead of SPY puts, we’ll go with VXX calls today for another possible quick strike options idea. We’re looking at the VXX Weekly $47-49 Calls.
*Trading weekly options on a Friday should never be attempted unless you are an expert level trader with disposable funds.
Extended Watchlist:
FNJN, ZSAN, LPCN, FNJN, TVIX, DRRX