Why Nike Stock Could Run Higher

NKE has several layers of support in place

May 5, 2023 at 1:58 PM

Subscribers to Schaeffer's Weekend Trader options recommendation service received this NKE commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

Blue-chip apparel maker Nike Inc (NYSE:NKE) is forming a bull flag on the charts, after breaking out of lower highs. The shares found support at the year-to-date anchored volume weighted average price (AVWAP) level. Adding to this bullish technical setup, NKE is pushing above an earnings candle with support from its 20-day moving average.

NKE WT

The equity is seasonally bullish heading into summer, yet puts have been building of late. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Nike stock sports a 10-day put/call volume ratio of 1.06 that shows puts being picked up a faster rate than calls. Further, traders have been targeting bearish bets at the 120-strike, which could become peak put soon, though the 125-strikes were added to on Friday.

Those looking to speculate with options can do so for a bargain right now. NKE's Schaeffer's Volatility Index (SVI) of 24% stands higher than just 4% of readings from the past 12 months, meaning options traders are pricing in extremely low volatility expectations at the moment. Furthermore, the security's Schaeffer's Volatility Scorecard (SVS) sits at a 72 out of 100, implying Nike stock has exceeded option traders' volatility expectations during the past year.

Our recommended call option has a leverage ratio of 7.5, and will double on a 13.2% pop in the underlying equity.

Follow @Schaeffers

Two High-Octane Trade Ideas. One Simple Goal: Intraday Profits.

Dynamite Day Trading Signals delivers two same-day options trades every week — powered by proprietary intraday analysis and 43+ years of trading expertise.

But this isn’t just another stream of alerts.

It’s a structured plan with clear entry and exit points – designed for traders who want to act fast, trade smart, and wrap up gains before the closing bell.

No guesswork. No overnight exposure – Just two well-researched setups per week — whether you prefer buying premium or selling it.

And the results speak for themselves: subscribers have locked in +245.8% total profit over the last six months (since inception!).

👉 Start your one-month trial now for just $10, and be ready for the next trade alert.