DKS is a great company in my opinion. Championship Week including the Big East Tournament presented by DKS is awesome baby with a capital A!
Having said that my strategy recently has been utilizing both bull and bear call spreads. ATM..This month I am looking to briefly close my position with DKS aligning myself with the highest open interest while covered @ 41 strike for March 19 calls.
The company is doing great things which included the recent event Champion R 5k at DKS Sporting Goods presenting ESPN The Weekend! Proceeds went towards cancer research!
DKS of course helped present the quarterfinals of the Big East Tournament game this afternoon at Madison Square Garden. Kemba will graduate in just 3 years from college and after the season is over declare for the the NBA draft. He is projected a mid first rounder and dreams of playing for the New York Knicks @ MSG since he is from the Bronx, NY and Rice High School!!!!!!!!! Here is today's game winner! :) xo
In my experience, "the big boys" sell calls when they anticipate a decline in the stock price. The trade is based on an expectation that the options will expire worthless.
Looks like the calls got sold as the price spiked at the open to $39. This smacks of manipulation.
DKS is overpriced. Should be trading closer to $30.
Tomorrow..? Might see another spike at the open, but DKS is going down. The retail sector is in a bear market since the end of December. Only a few retail stocks are above the 50 dma (TIF, COST) and those are seriously overvalued. The overall market is showing signs of a top, and is due for a correction. The jump in oil and other commodidities is worrisome. I imagine that money is going out of stocks and into commodities. The expectation is that retail sales will suffer as people pay more for gasoline.
Preserve capital. Sell DKS now. Find better investments at a later time.