Options traders are betting Nike can hit new all-time highs after the sportswear giant reports earnings Thursday
That implied move is only slightly higher than the 5.1% shift that Nike has made in either direction after earnings over the last eight quarters, and the stock is currently just 5% from new all-time highs, with much of the activity in the options market bullish about Nike making the leap.
"Most of the betting in the options market was bullish [on Wednesday]," said Khouw. "The 105-strike was the most active one. The [contract] I was looking at was the July 2 weekly 105-call, those were trading for about $1.30." Those calls break even at a stock price of about $106.30, or more than 6% higher than where Nike closed Wednesday's session, meaning these traders are betting on Nike to surge well into uncharted territory on the upside.
However, whether these traders are looking toward an even bigger post-earnings breakout, or just taking advantage of surprisingly inexpensive options premium prices remains to be seen. "These are very cheap options," said Khouw, "They cost just a little over 1% of the stock price, and that might be why one of the reasons, with [Nike] toying with this key level, that options traders are looking to toy with that strike in particular."
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
California's economic recovery will be like a slow 'Nike swoosh'California is unlikely to recover its pre-coronavirus prosperity over the next three years, economists say.
Read more »
Options traders are rushing into gold miners as coronavirus cases surgeEven as markets climb back toward all-time highs, options traders are getting bullish on gold rather than equities as coronavirus cases surge.
Read more »
5,489 New COVID-19 Cases: Texas Reports New All-Time Daily HighIn addition to new cases, 'The hospitalization rate is at an all-time high,' Gov. Greg Abbott says, describing the dire situation in one of the first states to reopen.
Read more »
5,489 New COVID-19 Cases: Texas Reports All-Time Daily HighTexas has reported an all-time high in new COVID-19 cases and hospitalization rate, Gov. Greg Abbott said Tuesday. For the first time, the state surpassed 5,000 new cases in a single day.
Read more »
Bank of America backs gold for all-time high this year as precious metal surgesGold has continued to rise of late as a resurgence of coronavirus cases, particularly in the U.S., has dented some of the investor optimism about the speed of a post-pandemic recovery.
Read more »
Texas hits all-time high for COVID-19 cases; governor urges residents to stay homeWith Texas hitting an all-time high for COVID-19 cases, Gov. Greg Abbott urges state residents to stay home unless they need to be out.
Read more »