New Options Contracts Available for Dick’s Sporting Goods Investors

Investors in Dick’s Sporting Goods, Inc (Symbol: DKS) now have access to new options for the May 23rd expiration. Utilizing Stock Options Channel’s YieldBoost formula, we analyzed the DKS options chain and identified one put and one call contract that stands out.

Put Contract Highlights

The put contract at the $175.00 strike price currently has a bid of $7.50. If an investor opts to sell-to-open this put contract, they are agreeing to buy the stock at $175.00, which allows them to also collect the premium. This effectively lowers the cost basis of their shares to $167.50, before broker commissions. For investors looking to acquire DKS shares, this strategy presents a viable alternative to the current market price of $177.23 per share.

Notably, the $175.00 strike price is about a 1% discount from the current trading price, marking it as out-of-the-money by this percentage. Analytical data indicates a 58% chance that this put contract could expire worthless. Stock Options Channel will monitor these odds and publish a chart on our website to track changes over time. Should the contract expire worthless, the premium could yield a 4.29% return on cash commitment, annualized at 31.29%—a metric we call YieldBoost.

Trailing Twelve-Month Trading History

The chart below illustrates the trailing twelve-month trading history of Dick’s Sporting Goods, Inc, highlighting the $175.00 strike price in green:

Call Contract Insights

On the call side, the contract at the $180.00 strike price has a current bid of $10.00. For investors purchasing DKS stock at $177.23 per share, selling this call contract as a “covered call” means committing to sell the stock at $180.00. This strategy, combined with the premium collected, results in a potential total return of 7.21% if the stock is called away at expiration (excluding dividends and broker commissions). However, significant upside remains if DKS shares rally, making it essential to evaluate the company’s trading history and fundamentals.

Below is the chart showing DKS’s trailing twelve-month trading history, with the $180.00 strike highlighted in red:

Strike Price Analysis

The $180.00 strike price represents approximately a 2% premium over the current trading price, putting it slightly out-of-the-money. There is a 49% chance that the covered call contract may expire worthless, allowing the investor to retain both the premium and their shares. Stock Options Channel will continue monitoring these odds, with updates published on our website. If the covered call expires worthless, the premium could equate to a 5.64% extra return for the investor, annualized at 41.19%, also known as YieldBoost.

The implied volatility for the put option is 42%, while the call option shows an implied volatility of 46%. Meanwhile, considering the last 251 trading days along with today’s price ($177.23), we calculate the actual trailing twelve-month volatility to be 42%. For more insights on put and call options, visit StockOptionsChannel.com.

Top YieldBoost Calls of Stocks with Insider Buying »

Also See:

• OSUR Options Chain
• ELIQ YTD Return
• Institutional Holders of AWP

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.