Its forward P/E is 9.5x, making it one of the cheaper stocks highlighted by Morningstar. However, the multiple has doubled in the past five years. 

Yesterday, Dick’s had two unusually active put options. 

Both have annualized returns of around 20%, a good return if you’re looking for a better entry point. The Jan. 23 $105 strike price is 5.7% OTM with a 19.8% annualized return. The Jan. 30 $100 strike price is 9.9% OTM with a 23.4% annualized return. 

Given the expected move is $3.16 to $104.27 on the downside, you may be able to keep the income from both options. 

Dick’s Sporting Goods has a forward P/E of 16.09x, the highest since March 2024. Analysts are lukewarm, with 11 out of 20 rating it a Buy. The $2.4 billion Foot Locker acquisition’s success remains uncertain. Unusual options activity includes one put. Despite a previous recommendation, concerns about valuation and acquisition strategy persist. However, a put option presents an opportunity for income generation.

Read more at Barchart: Why Selling Costco and 3 Other Unusually Active Puts Could Save You From Overpaying