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Carter Worth And Mike Khouw's Nike Trade

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Carter Worth And Mike Khouw's Nike Trade
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Carter Worth shared with the viewers of CNBC's Options Action his technical analysis of Nike Inc (NYSE: NKE). He noticed some bullish patterns on its chart and he thinks that it could move to $65.

Nike has recently moved more than 10 percent higher from its lows and it has broken above its down trend line. During the period of downtrend, the stock has under performed the consumer discretionary sector. In the last couple of months it started to catch up with its peers and Worth believes it's going to continue to perform better than the sector.

Mike Khouw suggested a simple bullish options strategy ahead of earnings report, which is due next week. He said that options in Nike are very cheap and he suggested that traders should consider a purchase of the June 57.50 calls for $2.45. The trade breaks even at $59.95 or 3.72 percent higher from the closing price on Friday.

Posted-In: Carter Worth Mike KhouwCNBC Technicals Options Markets Media Trading Ideas Best of Benzinga

 

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