$FL put buyers run up more profits

Foot Locker (FL) bears turned quick profits on bearish positions for the second time in a week.

On Sep. 8, Market Rebellion’s Unusual Activity Service found that 5,000 Weekly $52 puts, expiring on Sep. 24, were bought for $1.37 to $1.50 above the existing open interest of 54 contracts with shares at $52.55.

Those puts sold for as much as $2.60 this session, about double their purchase prices. The stock fell 5.31% in the same time period, a large move but nowhere near that of its options on a relative basis.

This marks the second winning trade in the name to be posted on Market Rebellion in the last week.

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 up 0.02% to $49.76.