FINL) – A share price for the disabled list…! Shares in Finish Line, the nationwide sportswear retailer, grabbed our attention due to a push in option volume to 7 times the normal level. This occurred as its shares traded 1.7% lower at $1.68, the latest pit stop in a ruinous decline that began in January 2007 with shares at $14.75. Over the past 52 weeks the company has not just surrendered 87% of its market capitalization, but underperformed the S&P consumer discretionary index by more than 50%, and lost a court ruling ordering it to honor the terms of its buyout of shoe and hat maker Genesco. Despite some pretty dire odds, it would seem that some traders aren’t quite betting on the end of the line for Finish Line yet, given fresh call spread activity in the May contract between the 2.50 and 5.00 calls. This transaction, which involved some 25,400 lots at each strike, looks like a debit spread in which the higher-priced 5.00 calls were sold at $0.11 in tandem with the purchase of $2.50 calls at about 50 cents apiece. This implies a doubling in Finish Line’s badly-winded share price by spring training in May.
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