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Tony Zhang's Nike Trade

Tony Zhang's Nike Trade

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.

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.


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Posted-In: CNBC Options Action Tony ZhangMedia