Dick's Sporting Goods will report earnings before the open tomorrow
Dick's Sporting Goods Inc (NYSE:DKS) stock was last seen down 5.7% to trade at $103.46 this afternoon, and adding to its nearly 10% year-to-date deficit. Today's negative price action has Dick's Sporting Goods stock extending its mark below the formerly supportive 200-day moving average. And while February saw DKS lock in its worst month since September, the company will report fourth-quarter financial results before the open tomorrow, March 8, inspiring confidence that the shares could be on the mend soon.
Looking at Dick's Sporting Goods stock's earnings history, the shares have moved higher in six out of the last eight post-earnings sessions, going back two years. The shares averaged an 8% pop the day after earnings, regardless of direction. This time around, the options market is pricing in a much larger 18.8% move for tomorrow's trading. A move of the latter's magnitude would put the shares back on track to reclaiming their Nov. 22 all-time high of $142.78.
A shift in the options pits could provide serious tailwinds for DKS. This is per the stock's 50-day put/call volume ratio of1.02 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 84% of readings from the past year. This means that long puts have been getting picked up at a quicker-than-usual clip in the last 10 weeks.
A short squeeze could also provide more fuel for the stock's fire. Short interest increased by 15.1% in the most recent reporting period. However, these bearish bets still represent a hefty 22.3% of the stock's total available float, and more than six days of pent-up buying power, at the security's average pace of trading.