On CNBC's Options Action, Dan Nathan spoke about the recent performance of Nike Inc NKE, and he suggested a bearish options strategy to exploit the recent weakness.
Market News and Data brought to you by Benzinga APIsNathan said that the stock performed poorly this year in comparison to the S&P 500 index. It is currently trading at a near-term support and if the company guides down next week, the stock is going to drop to $50, added Nathan. He wants to buy the October 55/50 put spread for $1.25 to make a bearish bet. The trade starts to make money at $53.75 and it can maximally make a profit of $3.75, if the stock drops to $50 or lower.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in