Shares of Dick’s Sporting Goods (DKS) break below support in the $100-$101 region today, as well as the 200-day moving average, though the 150-day trendline appears to be holding losses in check. Shares are down 7% to $99.65 on the last look as the stock succumbs to the retail slump following Target’s (TGT) sales warning for the current quarter.
Dick’s Sporting Goods will release its own third-quarter report ahead of its opening on Tuesday, November 22. DKS ended six of its last eight post-earnings sessions higher, including a 9.7% increase last May. This time around, option puts are pricing in a 10.4% next-day swing regardless of direction, which is larger than the 6.7% move the stock averaged over the past two years.
DKS is seeing a lot of puts being traded during today’s slump. 9,401 puts have been passed so far, which is double the intraday average. The November 98 put is the most popular, with new positions being opened there.
This penchant for bearish bets echoes the sentiment of the past 10 weeks. On the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), DKS has a 50-day put/call volume ratio of 2.28, which is above 98% of last year’s readings. year . This shows that it is being picked up much faster than usual.
It’s also worth noting that short-term interest accounts for an impressive 23.7% of the stock’s available float. It would take nearly eight days to hedge these bets, at the average stock trading pace.