Dick’s Sporting Goods Inc. (DKS) is a Pennsylvania based sporting goods retailer that operates just under 600 nationwide brick-and-mortar Dick’s Sporting Goods locations. DKS is currently trading at $54.45, up 10.58% on the session after a brief circuit-breaker halt was lifted just moments ago. The stock is now trading firmly in the upper portion of its 52 week trading range of $41.30-$58.87, and is pushing back towards $55.00 resistance on the daily chart following a buyout rumor originally posted by Reuters.
Just before the rumor that the company is talks to go private we saw a very bullish order hit the tape in DKS. A trader bought 2,000 of the DKS Jan 53 Calls for $0.25. These calls hit the tape moments before it was announced that DKS is in talks to go private. The stock ripped to $53.37 before being halted and traded as high as $55.90 after shares reopened. These calls have printed as high as $5.00 now making this trade a monster winner.
Trade: Trader bought the DKS Jan 53 Calls for $0.25
Risk: $25 per 1 lot
Reward: Unlimited
Breakeven: $53.25
Regards,
Andrew Keene
KeeneOnTheMarket.com
