4 Suppliers Sunk By Dick's Sporting Goods Inc's (DKS) Dreary Forecast

Dick's Sporting Goods Inc (NYSE:DKS) is sliding, and bringing down several suppliers with it

Nov 17, 2015 at 12:06 PM
facebook X logo linkedin


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. 
 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI