Nike (NKE) Offering Possible 17.92% Return Over the Next 37 Calendar Days

Nike's most recent trend suggests a bearish bias. One trading opportunity on Nike is a Bear Call Spread using a strike $87.50 short call and a strike $92.50 long call offers a potential 17.92% return on risk over the next 37 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $87.50 by expiration. The full premium credit of $0.76 would be kept by the premium seller. The risk of $4.24 would be incurred if the stock rose above the $92.50 long call strike price.

The 5-day moving average is moving down which suggests that the short-term momentum for Nike is bearish and the probability of a decline in share price is higher if the stock starts trending.

The 20-day moving average is moving down which suggests that the medium-term momentum for Nike is bearish.

The RSI indicator is at 29.58 level which suggests that the stock is neither overbought nor oversold at this time.

To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here


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Shares of Macy's (M) have tumbled nearly 30% in 2019, while the broader market and retail industry rebounded. Now investors need to decide what to do with Macy's stock heading into the release of its first-quarter fiscal 2019 financial results on Wednesday.

10 Blue Chip Stocks With Biggest Exposure To China Tariffs
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3 Top Large-Cap Stocks to Buy in May
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Forget about selling in May and going away — Cisco, General Mills, and Nike are all still great stocks to buy and forget.

NKE Will Run to All-Time Highs After Near-Term Hurdles
Mon, 13 May 2019 15:19:02 +0000
Late March, Nike (NYSE:NKE) stock fell almost 10% around its earnings event. Then, I wrote about going long the stock as it would be a winner for the long term. The stock then rallied 11% from low to high. So the traders among us probably locked in some profits as NKE stock set new all-time highs.Source: Alessio Jacona via FlickrSo is it time to sell NKE on this weakness? (It's down another 2% this morning.) No. In fact it is time to reload for another rally similar to the one in April. In March, investors sold Nike stock down for specific reasons. This time NKE is suffering because of the war of words between the American and Chinese politicians.On Friday, the U.S. imposed new tariffs on Chinese goods and this morning China retaliated. So there will be challenges for Nike, but trade war dangers have been telegraphed for over a year. So by now, I'd bet that NKE management has taken necessary precautions to minimize any possible damage — if there is any possible damage.InvestorPlace – Stock Market News, Stock Advice & Trading TipsThis is a giant global company that has been through several crisis situations. Nike continues to dominate, so this skirmish is not going to cause sustained harm to NKE's profit and loss statement. * 5 Tech Stocks Getting Crushed Two Fridays ago, the Trump tariff tweet caused a sharp market wide dip that took NKE from $86 to retest $82 per share. As long as this floor holds, it will serve as a strong base for the next rally and therein lies the thesis for today's opportunity. Trading NKE StockNKE stock will make new highs as markets shrug this tariff war tizzy in the next few weeks.While there is fear on Wall Street as we can see from the spike in the CBOE Volatility Index, Friday's price action was bullish. On Friday, the markets shrugged off the new tariffs and the debacle Uber (NYSE:UBER) IPO and rallied from down deep red to green. Clearly the bulls are not dead.As equities reversed course sharply, NKE stock now looks bullish like. So, today's write up is to share that upside potential that could carry it to new highs. There will be some resistance at $84.30, $86, and $88.50 per share.The NKE stock fans are strong. They flexed their muscles to close it green on the day we added tariffs on Chinese imports even though Nike is a global company and is vulnerable to these taxes. Yet it closed + 1.2% on the day when the earth was supposed to flip polarity.Fundamentally, Nike stock is not cheap as it sells at 33 trailing P/E ratio. But it is competitive when you consider that it only sells at three times its sales, which is in line with Apple (NASDAQ:AAPL) and almost half of Alphabet (NASDAQ:GOOGL) .So even though it is near all-time highs, owning NKE shares now for the long term is likely to yield profits. So the decision to buy it now is one that depends heavily on the investor time frame.The bears do have potential as they can cause technical harm if they can break below $81 per share. This would invite momentum sellers to target the $77 area. Although this is not a forecast, it is a possible scenario especially if the Chinese retaliations are more severe than anticipated. * 7 Dividend Stocks to Buy as the Trade War Reignites For those who want to own NKE for the long term, a few bucks above or below current levels are not going to matter much. But for shorter-term traders, you can set triggers and stop losses to find entry points that suit their time frames. Long term, this too shall pass and bulls will win over the bears.Nicolas Chahine is the managing director of As of this writing, he did not hold a position in any of the aforementioned securities. You can follow him as @racernic on Twitter and Stocktwits. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Dividend Stocks to Buy as the Trade War Reignites * 10 Stocks That Could Squeeze Short Sellers, Including CGC * 5 Tech Stocks Getting Crushed Compare Brokers The post NKE Will Run to All-Time Highs After Near-Term Hurdles appeared first on InvestorPlace.

Nike is Ready to Rebound
Mon, 13 May 2019 13:05:19 +0000
To receive further updates on this Nike (NYSE:NKE) trade as well as an alert when it's time to take profits, sign up for a risk-free trial of Strategic Trader today.After last Friday's rally, we are recommending a bullish trade on Nike (NYSE:NKE).As of 12:01 a.m. Friday morning, tariffs on $200 billion of Chinese goods jumped from 10% to 25%…and the world didn't end.InvestorPlace – Stock Market News, Stock Advice & Trading TipsEven though traders pushed the S&P 500 down to its lowest level since March 29 in early trading, Wall Street rallied. Now it appears to be signaling it still has confidence in the U.S. economy and the U.S. stock market.Friday's rally solidified support levels for many of the bullish trades we have in our portfolio, and it gives us an excellent opportunity to enter a new bullish trade on one of our favorite stocks in 2019: NKE.NKE has been a strong player in a strong industry group this year, and we expect the stock to only get stronger from here. Let's take a look at a few of the great things NKE has going for it. Tariffs Have a Limited Effect on NKEFrom a trade and tariff perspective, NKE is in a sweet spot because it only manufacturers about a quarter of its products in China. The company produces two thirds of its shoes and apparel in Vietnam and Indonesia, two countries that are not subject to the new 25% tariff.Plus, even though China and the United States are still embroiled in trade war disputes, NKE products continue to sell well in China.And NKE still has high profile endorsments, which should help its brands stay strong. Tiger Woods, one of NKE's high profile endorsers, returned to the top of the golf world with his recent win at the Masters.And basketball phenom Giannis Antetokounmpo — the star of the Milwaukee Bucks — is about to launch his new shoe, the Greek Freak 1. Demand for Tiger Woods' gear and the "Greek Freak's" shoes are bound to boost sales worldwide. Retesting a New 52-Week HighFrom a technical perspective, NKE is bouncing up off a strong up-trending support level. It has plenty of room to run to the upside, and the stock recently set a new 52-week high of $90 on April 18. We wouldn't be surprised to see the stock rally back up to this level during the next month or two.Daily Chart of Nike (NKE) — Chart Source: TradingViewWe aren't going out very far with the expiration date on this trade. The weekly options that expire in May have a lot of open interest and strong premiums, which should give us a great short-term profit.We also expect to enter another trade on NKE when this one expires, and we think we'll be able to do that at a higher strike price if the stock continues to rebound.To find out which puts we're selling — and to get access to our full portfolio of income-generating trades — consider signing up for risk-free trial subscription to Strategic Trader today. InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of, as well as the co-editors of Strategic Trader.Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.Compare Brokers The post Nike is Ready to Rebound appeared first on InvestorPlace.

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