Nike Inc. (NKE) is engaged in design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services across the world. The stock is currently trading around $105.50 at the upper end of its 52 week range of $75.03-$107.45. The stock has been outperforming the market this year rallying by 9.60% year to date. NKE is scheduled to report earnings after the closing bell today, and the stock is bearish today falling by $0.74 or 0.70% on the session ahead of the close.
Over the past 11 quarters NKE has rallied on earnings day 7 times with an average move of 4.80%. The stock appears bullish on a chart going into the release having traded above the Ichimoku Cloud for the past few months since about March on the daily bars. Over the past 11 quarters NKE has rallied from earnings to the nearest options expiration 7 times with an average move of 4.80%. The stock looks as if it could reverse today’s trend and rally in today’s session. Investors are happy to see Goldman Sachs report a price-target hike to $121 from $118 despite a 0.79 put/call ratio. Nike has also seen favorable earnings revisions typically a positive precursor to an earnings beat.
The options market is currently implying a move of around $3.79 or 3.6% in NKE by this Friday’s close giving us targets of $101.71 and $109.29.