Sell Dicks Sporting Goods Calls for 42% Gain

By Linda McDonough • November 17, 2017

Sell to close the January 19, 2018 call on Dicks Sporting Goods with a strike price of $27 at $2.70 or higher for a 42% gain. Symbol (DKS180119C27)

Investors have shifted from bearish to bullish on Dicks Sporting Goods thanks to positive news from competitor Hibbetts. Dicks is trading with a valuation half the level of Hibbetts despite similar earnings growth.

The calls were as high as $3.00 earlier this morning so it’s possible you get a better price.

As always, let me know how this trade worked out for you.

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Paul

11/17/17 ‐ 9:52am ET November 17, 2017 at 9:52am ET

DKS filled at $2.70. Thank You Linda.

Roger Dehring

11/17/17 ‐ 10:36am ET November 17, 2017 at 10:36am ET

Thanks for the recommendation, Jim,

Originally bought a JAN/MAR 28/24 diagonal. Paid $2.22/contract for that position, including commissions. Rolled the JAN 28 calls to MAR earlier this month. Noticed DKS was moving up and closed half a few days ago. Just closed the rest. Ended up getting $4.06/contract for the entire trade, including commissions. Expect that’s a bit over 80%…which ain’t all that bad for a months work.

Thanks!

Roger Dehring

11/17/17 ‐ 10:39am ET November 17, 2017 at 10:39am ET

Sorry about that Linda,

Didn’t look at which portfolio this was in when writing the comment above.

And thanks again for a great short-term trade.

roger

MODERATOR: Lisa G

11/17/17 ‐ 12:48pm ET November 17, 2017 at 12:48pm ET

Filled at 2.70 also.

Bruce Demko

11/21/17 ‐ 11:41am ET November 21, 2017 at 11:41am ET

10/13: bto dks 1/19/18 $25 call for 1.95
11/17: stc dks 1/19/18 $25 call for 4.20

not quite what you suggested, but entirely satisfactory. Thank you

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Linda McDonough

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Linda McDonough is a veteran hedge fund analyst who loves to break down company financial statements and identify market inefficiencies to uncover big opportunities. She believes in a boots-on-the-ground approach that includes surveying customers, interviewing company executives, or doing whatever it takes to see what others don't.

She's now brought her experience as a hedge fund analyst to subscribers of her Profit Catalyst Alert service. Her system identifies small- and mid-cap stocks that are about to move due to catalytic events that few others can identify...until it's too late. These events often times result in massive gains for her followers.