Nike is under fire for comments regarding accusations of forced labor in China
The shares of Nike Inc (NYSE:NKE) are coming under pressure today, after the shoe and apparel company received widespread criticism on Chinese social media due to its statement expressing concern over reports of forced labor in Xinjiang, and insisting that it does not source cotton from the region. The massive backlash on Chinese websites such as Weibo (WB) led well-known Chinese actor Wang Yibo to terminate his contract with Nike, and sent U.S.-listed shares to their lowest level since November earlier today.
The stock was last seen down 3.7% at $128.27. The equity has been in selloff mode since its disappointing earnings report last week, which sent the equity pulling back from the $146 region, an area of consolidation for NKE's highs for the better part of 2021. Today's dip has the security dropping below its 140-day moving average for the first time since last May, though the 200-day moving average sits just below as a potential net, should Nike stock continue its journey southward.
Nike's options pits are sounding off, too. So far, 68,000 calls and 99,000 puts have exchanged hands. Most popular is the April 141 call, followed by the 115 put in the same monthly series, with positions being opened at both. This suggests buyers of the latter are speculating on even more downside for NKE by the time these contracts expire on April 16.