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One stock that I have been watching closely of late is shoe manufacturing titan Nike (NKE). Shares have been coming down for more than a year, and just yesterday they came to rest on a level that has held three times in the past.
My proprietary trading system also senses that a mix of improving volume on the buy side should stabilize the stock here and allow it to gain a foothold, so to speak.
Whether it can really run higher from here is an open question, but it should at least be able to manage a jump.
In part because the stock has been abandoned of late, its implied volatility is relatively low — making the call options relatively cheap.
Buy the NKE Oct. 21st $53 calls (NKE161021C00053000) at current levels.
Jon Markman operates the investment firm Markman Capital Insights. He also offers a daily trading advisory service, Trader’s Advantage, and CounterPoint Options, a service that helps individual traders make steady, consistent profits with volatility-related instruments. Follow him on Twitter for his latest take on markets and innovation.