Traders want to turn time into money with Dick's Sporting Goods.
optionMONSTER's tracking programs detected the sale of about 1,000
September 46 calls for $0.86 and the purchase of an equal number of
September 44 calls for $1.57. Volume was below open interest at the
lower strike, so there are two possible explanations for the
One is that both halves of the trade were opened. In that case it
was a bullish
, with the potential to earn 182 percent from the stock closing at
$46 or higher on expiration five weeks from now.
Alternately, they might have entered the session long shares and
short the 46s as part of a covered call. In that case, rolling
higher would raise their eventual exit price by $2. Either way,
they paid $0.71 and think the stock will reach at least $46. (See
DKS fell 1.09 percent to $42.67 and is attempting to rebound from a
major selloff that erased more than one-third of its value through
early this month. Recent gains following bullish call buying last
week in the September 43s. (See this
Total option volume on Wednesday was twice the daily average, with
calls outnumbering puts by more than 6 to 1.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.
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