Nike, Inc. (NKE) is an athletic footwear and athletic apparel retailer based out of Beaverton, OR. At the time of this post (12:30PM CST), the stock is currently trading at 94.42, down 2.74% following a disappointing future orders number released as a part of last night’s quarterly earnings report. The stock traded as low as 92.83 earlier this morning, but has since rallied back after finding support around 93.00 on the intraday chart.
This morning at around 9:54AM CST, OptionHacker detected some unusual options activity crossing the tape as a relatively large buyer stepped in and bought the dip in NKE just as it was beginning its bounce. A trader purchased 658 of the NKE Jan 30 ’15 99.0 strike calls, a weekly contract that will be expiring the last Friday of the coming month. This large order crossed the tape near the ask, and went off against a minuscule open interest of just 5 contracts, which confirms that this was an opening transaction. NKE has pulled back off its 52 week highs of 99.76 that printed 11/28/2014, and after gapping down significantly following an overall earnings beat, it looks like this buyer decided to pounce on the weakness and establish a long position looking for a continued bounce back toward the highs. These options have about a month to expiry, which should provide a comfortable window of time in case this trader should decide to adjust their position. I will be looking to get long NKE into the New Year in order to capitalize on this potential continuation bounce.
Regards,
Andrew Keene
KeeneOnTheMarket.com
