Why These Nike Investors Are Cautious Ahead Of Earnings

Zinger Key Points
  • Raskin owns Nike shares, but she trimmed her position ahead of the report, citing China concerns. 
  • Najarian is seeing increased put buying activity in Nike at the $100, $95 and $90 strikes.

A group of investors are cautious on Nike Inc NKE stock as the company prepares to report earnings after the bell.

What To Know: COVID-19 lockdowns in China could pull in the reins on Nike earnings, several investors warned Monday on CNBC's "Fast Money Halftime Report."

Chevy Chase Trust's Amy Raskin owns Nike shares, but she trimmed her position ahead of the report, citing China concerns. 

"If you are not allowed to leave your house or your apartment, you are probably going to go for fewer runs and buying new athletic gear is probably not going to be top of mind for you," Raskin said. 

China began easing COVID-19 restrictions at the beginning of the month following two months of lockdown measures in the country. The extent to which companies were impacted by lockdowns should become more clear during the second-quarter earnings season. 

See Also: Top China Communist Officials Rush To Prove Loyalty To Xi Jinping Ahead Of Crucial Event

Short Hills Capital's Steve Weiss expressed a similar sentiment and a lot of the same global concerns.

"If China is shut down, and that's a big market for Nike," Weiss said. "How do you expect them to put up any type of decent quarter?

Market Rebellion co-founder Jon Najarian noted that options traders are preparing for more downside in Nike stock this evening. 

"They're buying the $100 puts, they're buying the $95 puts, they're buying the $90 puts in Nike," he said.

"That's either protective ... or it's a bet that the stock goes lower after the earnings tonight."

Nike is expected to earn 81 cents per share on quarterly revenue of $12.07 billion, according to data from Benzinga Pro.

NKE Price Action: Nike has a 52-week high of $179.10 and a 52-week low of $103.46.

The stock was down 1.87% at $110.80 Monday afternoon. 

Photo: Karolina Grabowska from Pixabay.

Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsPreviewsMediaTrading IdeasAmy RaskinCNBCJon Najariansteve weiss