DKS Earnings Rebound, Buy 4DEC CALL $54 @$1.50-$1.80
Fundamental analysis indicates DKS will continue to perform well under COVID restrictions. In light of vaccine news, DKS has poised itself well with new stores and additional workers to capitalize on increased brick & mortar foot traffic. Sentimental analysis sets the stage for a strong rebound (earnings [24NOV-historically does well], new product line [joint venture with UA/UAA], positive post-COVID performance [outpaced SPY, DIA, & QQQ]). Technical analysis shows DKS has been in a 4 week bear run. The RSI shows entering the oversold region (below 30). Wait for a reversal early confirmation of MACD crossover under the 0-line, and final confirmation of 13 SMA crossing over 30 SMA before purchasing long position.
Entry price - $49.80 - $51 // $1.5-$1.8 (4 DEC CALL $54 strike)
TGT Sale price - $54 (conservative) / $62 (higher risk) // 100% option value ($3)
Stop loss - $47.50 (conservative) / 50% of Options price (higher risk)
Max position size - 5% of portfolio
Entry price - $49.80 - $51 // $1.5-$1.8 (4 DEC CALL $54 strike)
TGT Sale price - $54 (conservative) / $62 (higher risk) // 100% option value ($3)
Stop loss - $47.50 (conservative) / 50% of Options price (higher risk)
Max position size - 5% of portfolio
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