Market News

December 23, 2016  Fri 8:23 AM CT

Retailers are under pressure and now the bears think Dick's Sporting Goods will head lower.

OptionMonster's market scanner shows that 26,000 March 44 puts were purchased for $1.15. There was no open interest at the strike before the trade appeared, an indication new money was put to work.

Puts fix the price where a stock can be sold, so they make money to the downside. (See our Education section.) Investors use them to hedge long positions or to speculate on a drop.

DKS fell 7.78 percent to $52.85 yesterday, following a broad selloff in the retail sector. Hopes of a turnaround lifted the sporting-goods company to an all-time high in November, but it's crumbled 12 percent in the last week as negative sentiment sweeps the retail sector.

Overall option volume was 16 times greater than average in the session, with puts outnumbering calls by a bearish 11-to-1 ratio.

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From the AP Archives: If It's Not There...

I have talked at great length about the fact that as an individual investor, you do not have to be in the market at all times.

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