NIKE, Inc (NKE) designs, markets and sells footwear, athletic apparel and accessories around the world. The company’s stock is currently trading around $73.15 in a 52 week range of $59.11-$80.26. The stock has been underperforming the broader market this year with shares falling just over 7% year to date. Despite the stocks weakness this year options traders have been making bullish bets on the stock during today’s trading session. Earlier this morning a trader bought 2,430 NKE Jun 75 calls for $0.87. This is a bullish trade that requires this trader to lay out more than $210,000 in capital. Although shares of NKE are trading below the Ichimoku Cloud, indicating a bearish chart, the future cloud is sideways rather than downward sloping. This sideways cloud formation would suggest the stock is actually in neutral territory. While not the most bullish set up on a chart, this order flow could be signaling some further upside in NKE.
My Trade: I bought the NKE Jun 75 Calls for $0.93
Risk: $93 per 1 lot