Why The Eagle Bay Capital Founder Has No Reason To Be In Nike

JC Parets is a weekly guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick. Tune in to the daily broadcast live Monday-Friday at 8 a.m. ET here.

JC Parets is the Founder of Eagle Bay Capital and discussed why he has no interest in holding an investment in Nike Inc NKE following its exclusive on-court apparel agreement with the NBA, WNBA and D - League beginning with the 2017-2018 season and extending through the 2025-2026 season. Parets noted that shares of Nike has already hit his price target of $104.50 and at current levels he "wouldn't touch it." The trading pro did however admit that if shares of Nike gap above its prior-highs of $105.50 it can trade higher to the $112 level. Shares of Nike opened for trading at $105.09 (trading as high as $105.12) on Thursday after closing at $103.63 on Wednesday. Shares quickly reversed and were trading higher by only $0.60 Thursday afternoon at $103.94. Nevertheless, Parets noted that he maintains a disciplined investment style. He added that once a stock reaches his price target, he avoids further trades in the issue. Following the morning discussion with Parets, Elconin commented in a post that Thursday's peak of $105.12 coincides with a series of four highs between $105.18 and $105.22 from May 19 to May 22. The Benzinga #PreMarket co-host also noted that shares are attempting to find support just below Wednesday's close and stage a rebound.