Mike Khouw's Bearish Nike Trade

Loading...
Loading...

Mike Khouw shared with the viewers of CNBC's "Options Action" his bearish options strategy in Nike Inc NKE.

The company is going to report earnings on June 29 and Khouw wants to sell a call spread, to make money if the stock trades lower, stays at its current price or even if it trades slightly higher. He wants to sell the July 53.50 call for $1.15 and buy the July 54.50 call for 80 cents. With the trade, he is going to collect a net premium of 35 cents, if the stock stays below $53.50 at the July expiration. The trade starts to lose money above $53.85 and it can maximally lose 65 cents.

Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: CNBCOptionsMarketsMediaMike KhouwOptions Action
We simplify 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!

Loading...