Foot Locker (FL) has not worked out for us despite today’s pop on stronger-than-expected retail sales data. This was designed to be a short-term trade given the heavy weight of rising inflation on consumer discretionary stocks.
Therefore, I am recommending we close the position now at a loss rather than rolling it out. We will redeploy the capital on better opportunities next week.
If you have been assigned shares of FL, please email me at [email protected] if you need further guidance.
Current Stock Price: $25.37
Cash in Hand: $0.70
Action: Buy to close the FL Jul Monthly (7/15) 27.50 Put
Current Option Price: $2.15-$2.30
Recommended Limit: Set your initial limit order at $2.25, but adjust as needed to close today
Loss: $1.55, or $155 per contract
Rate of Return: -5.6% in 18 days, or -114% on an annualized basis