$FL put buyers run up fast profits

Foot Locker (FL) bears turned quick profits on bearish positions opened only midday yesterday.

Just yesterday, Market Rebellion’s Unusual Activity Service found that 5,000 Weekly $54 puts, expiring on Sep. 24, were bought for $1.20 to $1.35 above the existing open interest of 23 contracts with shares at $55.12.

Those puts sold for as much as $2.50 this session, about double their purchase prices. The stock fell 4.66% in the same time period, a large move but nowhere near that of its options on a relative basis.

Long puts lock in the price where a stock can be sold no matter how far it might drop, gaining value in a selloff with the potential for significant leverage. The contracts can be purchased either as an outright bearish bet or a hedge on a long-stock position.

FL ended today’s session down 0.95% to $52.97.