by Ian Harvey
August 16, 2017
Here is an overview of Dicks Sporting Goods Inc (NYSE:DKS) after reporting earnings. This options trade was recommended on Thursday, August 10, 2017 to “Cut-to-the Chase” members of Stock Options Made Easy; and then publicly in the article “Earnings Predictions for the Week Beginning August 14, 2017, with the company reporting on Tuesday, August 15, before the market opened; producing major potential profits within a very short period of executing the trade.
The Suggestion……from “Earnings Predictions for the Week Beginning August 14, 2017”
** OPTION TRADE: Buy the DKS SEPT 15 2017 35.000 PUT at approximately $1.50.
Dicks Sporting Goods provided an earnings report yesterday that was greatly below par – missing Wall Street estimates on both earnings and revenue, as well as its comparable sales falling short, pressured by weakness in hunting, licensed and athletic apparel.
The Coraopolis, Pennsylvania-based company said it had profit of $1.03 per share. Earnings, adjusted for pretax gains, came to 96 cents per share.
These results did not meet Wall Street expectations. The average estimate of analysts was for earnings of $1.02 per share.
The sporting goods retailer posted revenue of $2.16 billion in the period, which also missed Street forecasts of $2.17 billion.
Dick's shares have declined 34 percent since the beginning of the year. The stock has dropped 46 percent in the last 12 months, trading at its lowest price since October 2010.
To see the recommended trade and why…… CLICK HERE.
The Morning of the Report……
Shares of Dick's Sporting Goods plummeted on Tuesday morning after the retailer posted underwhelming quarterly same-store sales growth. The chains’ massive sell-off dragged sporting goods manufacturers and sportswear companies, including Nike (NKE) and Under Armour (UAA), lower as well.
Dick’s sank to a new 52-week low on Tuesday morning; touching $27.92 a share after investors hammered the company’s stock. The brick-and-mortar sports chain carries almost every major sportswear company in the world, and its 0.1% same-store sales growth has some investors running scared.
Many other companies in the retail sector shared Dick’s fate, while some were able to avoid the downturn. But companies with big exposure inside of the sporting goods chain were not so lucky.
Dick's Sporting Goods closed Tuesday at $26.87, down $8.04, or -23.03%.
And, in after-hours trading the rout continued.
So, for members of Stock Options Made Easy; a nice tidy potential profit of 443% within a few days.
ACTION TO TAKE…….
As you would have by now realized, many of our trades are based on earnings predictions. This is not to say all trades recommended to members follow this pattern, but during earnings season this strategy has been very profitable.
Our approach is to predict whether a company will beat or miss estimates, whether the stock will appreciate or depreciate as a result and what strategies investors and traders can use. This type of prediction is based on thorough investigation and fundamentally based research, and the results have been very exceptional.
As an example, the trade mentioned here, “Dick's Sporting Goods Put Options Trade”, having provided a return of 443%, and is likely to continue climbing, would cover the loss of 4 other options trades, if all trades are executed on a fairly equal basis, and still have some profit left.
However, if you have been following our newsletters of the past several weeks of “Earnings Predictions”, then you will see that profits are quite weighted to the positive.
Our proven track record says it all!!
Members of Stock Options Made Easy are provided with an extensive reason as to which direction a stock will move after earnings, followed up by a recommended options trade.
What To Do Now…….
If you interested in being part of this profitable action just click here……