Tony Zhang spoke on CNBC's "Options Action" about Nike Inc (NYSE:NKE).
He is looking to sell the stock because he expects it to trade lower, along with the consumer discretionary sector. Nike retraced 50% of the initial sell-off and it bounced lower off the $87 resistance level. Zhang thinks it could test $60 to $70 range again.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
See Also: Here's How Much Investing $100 In Nike Stock Back In 2010 Would Be Worth Today
To make a bearish trade, he wants to buy the $80/$62.50 put spread for $5. The break even for the trade is at $75 or around 5% below the closing price on Friday.
The trade can maximally make a profit of $12.50, if the stock drops to $62.50 or lower.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.