Nike Earnings Top Expectations, Options Traders Bet On Stock Heading Lower

Nike, Inc. NKE reported better-than-expected third-quarter results and reported an increase in direct, digital and wholesale revenues.

On CNBC’s "Options Action," Brian Stutland of Equity Armor Investments said Nike traded at more than 3.5x average daily volume on Wednesday.

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There was a buyer of 1,000 of the March 24 weekly 120-puts at an average price of 67 cents per contract, Stutland mentioned.

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The trader sees Nike’s stock closing the week on a lower note.

Nike said fiscal third-quarter revenue increased 14% year-over-year to $12.4 billion, which beat average analyst estimates of $11.47 billion. Nike Direct sales were up 17% year-over-year, while digital sales increased 20% and wholesale grew 12%.

Price Action: Nike’s shares dropped 4.9% to settle at $119.50 on Wednesday.

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