Unusual Options Activity: Traders bet Dollar General Corporation (DG) Stock Will Bounce Back After Today’s Major Selloff
Traders are betting Thursday that Dollar General Corporation (DG) will bounce after today’s major selloff. The stock gapped sharply lower today following fourth-quarter earnings miss. After closing at $120.68 yesterday, DG opened today’s trading at $111.64 and fell as low as $108.75 before bouncing to its current trading price of $110.44. So far today, 5,337 contracts of the April 115 call have changed hands, against open interest of just 10 contracts.
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About Dollar General Corporation
A leading American discount retailer, Dollar General operates over 15,000 stores in 44 states, selling branded and private-label products across a wide variety of categories. In fiscal 2018, 78% of net sales came from consumables (including paper and cleaning products, packaged and perishable food, tobacco, and health and beauty items), 12% from seasonal merchandise (such as toys, greeting cards, decorations, and gardening supplies), 6% from home products (for example, kitchen supplies, small appliances, and cookware), and 5% from basic apparel. Stores average roughly 7,400 square feet, and about 75% of Dollar General locations are in towns of 20,000 or fewer people. The firm emphasizes value, with more than 80% of its items sold at $5 or less, mostly using an everyday low price strategy.