Nike Stock Scores New Highs After Bull Note

NKE options are affordably priced at the moment

Deputy Editor
Aug 19, 2020 at 9:35 AM
facebook twitter linkedin

The shares of Nike Inc (NYSE:NKE) are hovering up 1.2% at $108.20 at last check, after a price-target hike from Stifel to $140 from $122. The firm cited more demand for athletic footwear than expected, given the state of the pandemic, and promising potential earnings.

On the charts, a 9.5% monthly gain has helped Nike stock reclaim its year-to-date breakeven level. For most of the summer, the shares have relied on the $97 level --with their 200-day moving average just below -- as a stable floor.

Analysts are bullish on Nike stock, with 22 out of the 27 in coverage at a "buy" or better rating. Coming into today, the 12-month consensus price target of $112.79 is a 5.4% premium to current levels. Also worth noting is the equity's 14-day Relative Strength Index (RSI) of 68, on the cusp of overbought territory. This means the stock a short-term breather could be in the cards for NKE. 

In the options pits, calls have more than tripled puts in the last 10 days. This is per NKE's 10-day call/put volume ratio of 3.41 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than all but 2% of readings from the past year, meaning options traders have rarely been more bullish. 

That said, the stock is seeing attractively-priced premiums as well. Nike stock's Schaeffer's Volatility Index (SVI) of 26% stands higher than just 9% of all other readings in its annual range, implying that options players are pricing in relatively low volatility expectations at the moment. 


Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

Schaeffer's Daily Bulletin Offer


Special Offers from Schaeffer's Trading Partners