Nike Stock Earnings Reaction Catches Options Traders Off Guard

The sporting apparel stock received no fewer than seven price-target hikes after earnings

Managing Editor
Mar 23, 2018 at 9:47 AM
facebook X logo linkedin

Shares of Nike Inc (NYSE:NKE) are soaring, after the athletic apparel concern reported fiscal third-quarter adjusted earnings and revenue beats last night, and in response, received a fresh round of bullish brokerage notes. The most notable price-target hike came from Deutsche Bank to $76 from $75 -- an 18% premium to last night's close, and uncharted territory for the Dow stock. At last check, NKE was up 3.6% at $66.71 in early trading.

Nike stock has already had an impressive run up the charts -- gaining 32% since skimming the round $50 mark in mid-October, and more recently touching a fresh record high of $70.25 on Feb. 27. Plus, yesterday's broad market-related dip was quickly contained by NKE's rising 80-day moving average. 

Nevertheless, put buyers have been swarming the retail stock. Data from the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) shows NKE with a 10-day put/call volume ratio of 1.52, ranking in the 89th percentile of it annual range. This indicates that puts have been purchased over calls at a much faster-than-usual clip during the past two weeks.

Echoing this, NKE stock's Schaeffer's put/call open interest ratio (SOIR) of 1.30 ranks in the 79th percentile of its annual range, showing a heavier-than-normal put-skew among options expiring within three months. While some of this activity may be a result of shareholders hedging against any unexpected downside, a capitulation from some of the weaker bearish hands could translate into tailwinds for the shares.


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI