Analysts, Options Traders Blitz Nike Stock After Earnings

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

Deputy Editor
Mar 22, 2022 at 10:08 AM
facebook twitter linkedin


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. 

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 

300x250 - Banner 3 - v1