Option update: Financial Select Sector put volume suggests downside risk


Financial Select Sector SPDR (AMEX: XLF) is recently down $1.05 to $29.46. XLF call option volume of 16,078 contracts compares to put volume of 59,665 contracts. XLF December option implied volatility of 40 is above its 26-week average is 25 according to Track Data, suggesting hedging for continued downside risk.

Dicks Sporting Goods Inc. (NYSE: DKS), an operator of 314 sporting goods stores, is expected to report EPS of five cents on November 20 according to Thompson First Call. Nollenberger Capital Partners says, "we would use this pullback as a unique opportunity to buy the stock at a compelling valuation." DKS December option implied volatility of 64 is above its 26-week average of 34 according to Track Data, suggesting larger price action.

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Last updated: February 10, 2012: 06:24 AM

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