Carter Worth And Mike Khouw's Nike Inc Trade

Carter Worth spoke on

about a relationship between

and

. He explained that Nike products account to 60 percent of

sales and 20 percent of Nike's revenues comes from

stores. He sees this relationship as a reason for a strong correlation between two stocks and he believes that

is going to trade lower, to $52, after

failed to meet earnings expectations. Mike Khouw agrees that

could make a pull back and he suggested an options strategy to make a bearish bet. He would sell the July 57.5/60 call spread for $0.95 and that is the maximal profit he can make with the trade. If the stock trades above $58.45, the trade is going to start to lose money and his maximal loss of $1.55 is going to occur if

jumps above $60 at the July expiration.