Nike Stock Races Higher Following Top-Line Beat

Analysts and options traders have been quick to adjust NKE positions

Deputy Editor
Dec 21, 2021 at 10:25 AM
    facebook twitter linkedin

    The share of blue-chip Nike Inc (NYSE:NKE) are surging this morning, up 7.5% to trade at $168.47 at last check. The retail giant reported better-than-expected fiscal second-quarter earnings and revenue, while noting that it was less concerned about supply chain issues for next year. To follow, no fewer than five analysts lifted their price targets, including Truist Securities to $196 from $190, though J.P. Morgan Securities slashed its price target to $185 from $192. 

    On the charts, today's gap higher has NKE back above the $166 level, and rebounding toward its Nov. 5 record high of $179.10. Plus, the stock has now broken above a slew of short-term moving averages, including the 10-day trendline. Year-to-date, the equity is up 19.4%. 

    The options pits were more bearish than usual ahead of Nike's report, as per NKE's 10-day put/call volume ratio of 1.23 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 96% of readings from the past year.

    For today, options volume is running at nine times what's typically seen, and there appears to be a shift towards calls. So far, 35,000 calls and 30,000 puts have crossed the tape. The weekly 12/23 170-strike call is the most popular, followed by the weekly 12/23 160-strike put, with new positions being opened at both. 


    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