Dick's Sporting Goods will report Q4 results before the open on Thursday, March 12
Dick's Sporting Goods Inc (NYSE:DKS) stock is pulling back, just ahead of its fourth-quarter earnings report, due out before the open on Thursday, March. 12. Shares were last seen down 2% to trade at $193.50, pacing for their lowest close since June and fourth loss in five sessions. The equity earlier this month broke below support at $200, which had contained several drawdowns since July, and carries a 10.1% year-over-year deficit.
The stock has a mixed history of post-earnings reactions, finishing four of the last eight sessions lower. In the past two years, DKS has averaged a 6.3% post-earnings move, regardless of direction. This time around, though, the options pits are pricing in a much larger-than-usual 12.9% swing.
Calls have been much more popular than usual over the last 10 weeks, per the stock's 50-day call/put volume ratio of 2.09 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 96% of readings from the past year.
These bulls are doubling down today, with 2,447 calls exchanged so far today -- triple the volume typically seen at this point -- compared to just 669 puts. The most active contract is the March 200 call, where positions are now opening, followed by the 230 call in the same series.
It's worth noting that Dick's Sporting Goods stock's Schaeffer's Volatility Scorecard (SVS) comes in at 8 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in over the past 12 months, making it a premium selling candidate.