Put Traders Move in Ahead of Dick's Sporting Goods Earnings

Shares of Dick's Sporting Goods Inc (NYSE:DKS) is trading 0.7% higher at $220.67 this afternoon, extending a bounce after its most recent pullback captured by the 126-day moving average. This trendline acted as resistance from November to mid April. DKS sports an 11.3% year-to-date lead ahead of is upcoming first-quarter earnings report, due out before the open on Wednesday, May 27.

Over the past two years, DKS has had a split post-earnings performance, finishing the next session lower after four of the company's last eight reports, including a 4.8% drop in August. The stock averaged a move of 4.5% in this time frame, regardless of direction. This time around, a larger-than-usual 10.1% shift is anticipated by options traders.

Options traders are more pessimistic than usual ahead of the event. This is per DKS' 10-day put/call volume ratio of 1.20 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits higher than 73% of readings from the last year.

Currently, 13 of the 22 brokerages in coverage sport a "buy" or "strong buy" recommendation. This leaves ample room for more bears to move in, should the earnings event not produce upbeat results.

Dick's Sporting Goods stock's Schaeffer's Volatility Scorecard (SVS) comes in at 2 out of 100. In other words, the security has consistently realized lower volatility than its options have priced in over the past 12 months.