LULU and NKE are gapping lower in response to tariffs
The shares of retail behemoths Nike Inc (NYSE:NKE) and Lululemon Athletica Inc (NASDAQ:LULU) are both gapping lower today, after President Donald Trump imposed a 25% tariff on Mexico and Canada over the weekend, as well as a 10% levy on China.
NKE Set to Extend Losing Streak
At last glance, NKE is down 4.1% to trade at $73.76, brushing off a price-target hike from BMO to $95 from $92. The equity is looking to extend its 26.2% year-over-year deficit, and is pacing for its sixth loss in the last six trading days. Last week the security made a run at $80 for and its 126-day moving average for the first time in 2025, but was rejected amid Friday's selloff.
Short-term options traders lean bearish. This is per the stock’s Schaeffer's put/call open interest ratio (SOIR) of 1.06, which stands in the 96th percentile of annual readings.
Options Bears Blast LULU
LULU was last seen down 2.9% at $402.07, deepening a 13.2% year-over-year deficit. The stock is poised to snap a six-day win streak, but overall has executed a nifty V-shaped rally since an Aug. 5 12-month low of $226.01. It's worth noting that its 20-day moving average looks ready to contain today's losses.
In today's options pits, 2,925 puts have crossed the tape for LULU, double the intraday average amount. Mos active is the weekly 2/7 405-strike put, where new positions are being opened.