Market News

October 17, 2016  Mon 5:47 AM CT

A trader is increasing a bearish position in Dick's Sporting Goods.

optionMONSTER's market scanner detected the sale of 1,000 October 57.50 puts for $1.25 and $1.30 while 1,500 November 55 puts were purchased for $1.90 on Friday. Volume was below open interest in the October contracts, indicating that a bearish position was rolled to a lower strike one month later and increased in size.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

DKS rose 0.97 percent to $56.46 on Friday and is up 13 percent in the last three months. The sporting-goods chain is expected to report earnings in pre-market hours on Nov. 15.

Overall option volume in the name was twice its daily average on Friday. Puts outnumbered calls by a bearish 10-to-1 ratio.

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