FL Forecast + Trading Strategies


Bullish Case: Foot Locker's ongoing digital transformation, improved brand partnerships, and store revamps may lead to a strong performance rebound. High earnings expectations, low valuation, and positive EPS growth forecast contribute to the upside potential.


Bearish Case: Persistent consumer spending weakness, high inventory levels, and reliance on struggling partners like Nike pose substantial downside risks. Furthermore, prolonged macroeconomic uncertainty and high volatility could continue to depress FL's price.


Potential Outcomes: Earnings beat (30%): modest rise. Prolonged consumer weakness (55%): steady decline. Strategic shifts (15%): unpredictable shifts in value.


Trading Oracle: Sell put credit spreads expiring August 16, 2024. Target $25.50/$23.00 puts. This strategy aligns with Helium's bullish short volatility outlook and capitalizes on high near-term implied volatility. High volatility premium and a high probability of profit of 70% offer a favorable risk-reward ratio.


July 23, 2024


Foot Locker Forecast

FL      Foot Locker











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