Bulls still shopping at Dick's Sporting

By
A A A

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 activity.

One is that both halves of the trade were opened. In that case it was a bullish call spread , 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 our Education section.)

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 related story for more.)

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.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: DKS

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

50%

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com