Q2 STOCKS TO BUY

NIKE Speculator Bets a Half Million on All-Time Highs

Nike Inc (NKE) would need to hit record levels by July expiration for this trader to profit

Digital Content Group
Apr 15, 2015 at 12:55 PM
facebook X logo linkedin


An upgrade to "overweight" from "neutral" at Piper Jaffray has Nike Inc (NYSE:NKE) 0.5% higher at $100.08. The price action has prompted a fresh wave of call buying, with heavy attention being paid to the July 105 call. Actually, much of the action here can be attributed to one trader, who bought to open 2,500 contracts for $2.03 apiece -- resulting in an initial cash outlay of $507,500 (number of contracts * premium paid * 100 shares per contract). By purchasing the options, this trader is betting on NKE to eclipse $105 -- territory never before seen -- by July expiration.

Don't put it past the equity to hit this mark, though. In the past year, NKE has gained roughly 37% -- and hit an all-time peak of $103.79 as recently as March 20. Also, the shares are now back atop their 20-day moving average, which has provided solid support since late February.

Daily Chart of NKE since January 2015 with 20-Day Moving Average

Even so, some analysts refuse to get behind the stock. There are currently 21 brokerage firms tracking the shares, and nine of them rate the security a tepid "hold." If NKE can sustain its long-term technical strength, it could benefit from a fresh round of upgrades.

Nike Inc (NYSE:NKE) could also see a boost should put-focused options traders flee the scene. The security's Schaeffer's put/call open interest ratio (SOIR) of 1.81 reveals put open interest nearly doubles call open interest among options expiring in three months or less. Moreover, this ratio ranks in the 90th annual percentile, meaning short-term speculators are far more put-skewed than normal.

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter