Dick's Sporting Goods Inc (NYSE:DKS) is sliding, and bringing down several suppliers with it
While other
retailers are surging,
Dick's Sporting Goods Inc (NYSE:DKS) is getting pounded, dropping 10.4% to $36.56, and earlier touching a four-year low of $33.42, after the firm announced disappointing quarterly earnings and cut its
full-year profit forecast. The stock's troubles have had far-reaching effects, dragging down some of the retailer's top suppliers.
Specifically, blue chip
Nike Inc (NYSE:NKE) slid 2.5% out of the gate, but has since pared some of its losses to trade at $122.47 -- down just 0.8%. Still, bears have been quick to rush to NKE's option pits, as puts are crossing at 1.7 times the typical midday rate, and outstripping calls.
Unfortunately for
Under Armour Inc (NYSE:UA), it hasn't been able to pare its early losses, last seen 5.3% lower at $85.27 -- not far from an intraday low. UA has seemingly found support at its 50-week moving average, though, and still stands over 25% higher in 2015. Elsewhere, options traders are taking action. UA calls are crossing at three times the expected rate, while put volume comes in at twice the usual intraday amount.
Lululemon Athletica inc. (NASDAQ:LULU), meanwhile, is down 2% at $44.33. Although LULU has been pulling back, the shares may be on the verge of a short-term bounce. The stock's
14-day Relative Strength Index (RSI) sits at 31, near oversold territory. However, one group of option traders is already throwing in the towel, as data from the International Securities Exchange (ISE) confirms significant sell-to-close activity at the December 52.50 call.
Lastly, there's
Foot Locker, Inc. (NYSE:FL), which has rebounded from an earlier 2.8% loss, and was last seen 1.1% higher at $59.81. Short sellers, though, are counting on the shares to explore further downside. Currently, 10% of the stock's float is sold short, representing 5.6 days' worth of buying power, at average daily volumes.