Analysts, Options Traders Blitz Nike Stock After Earnings

NKE is chipping away at its year-to-date deficit

Jake Scott

Deputy Editor

Mar 22, 2022 at 10:08 AM

Blue-chip apparel maker Nike Inc (NYSE:NKE) is popping this morning, up 5.1% to trade at $136.88 at last check. The retail name reported better-than-expected fiscal third-quarter earnings and revenue, thanks to strong digital sales and success navigating supply chain challenges.

Analysts were quick to respond to the results with bull notes, after a flurry of pre-earnings bear notes. No fewer than five analysts lifted their price targets, including Truist Securities to $176 from $164, while BMO slashed its price target to $150 from $170.

Should today's positive price action hold, Nike stock will secure its first close above the $138 level since Feb. 25. Plus, the stock is breaking back above a number of short-term moving averages, including the 30-day trendline, which thwarted a mid-February move higher. NKE is also chipping away at its year-to-date deficit, now down 16.9% in 2022.

So far today, options volume is running at eight times what's typically seen at this point. There seems to be a shift towards bullish bets, with 45,000 calls and 28,000 puts across the tape. The 3/25 140-strike call is the most popular, where positions are being opened, followed by the 135-strike call in the same weekly series.

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