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Carter Worth And Mike Khouw's Nike Trade

Carter Worth And Mike Khouw's Nike Trade

Carter Worth spoke on CNBC's Options Action about a relationship between Nike Inc (NYSE: NKE) and Foot Locker, Inc. (NYSE: FL).

He explained that Nike products account to 60 percent of Foot Locker's sales and 20 percent of Nike's revenues comes from Foot Locker stores. He sees this relationship as a reason for a strong correlation between two stocks and he believes that Nike is going to trade lower, to $52, after Foot Locker failed to meet earnings expectations.

Related Link: Carter Worth And Mike Khouw's Intel Trade

Mike Khouw agrees that Nike could make a pull back and he suggested an options strategy to make a bearish bet. He would sell the July 57.5/60 call spread for $0.95 and that is the maximal profit he can make with the trade. If the stock trades above $58.45, the trade is going to start to lose money and his maximal loss of $1.55 is going to occur if Nike jumps above $60 at the July expiration.

Posted-In: Carter Worth CNBC Mike Khouw Options ActionOptions Markets Media Best of Benzinga


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