Nike (NKE) Offering Possible 25.94% Return Over the Next 30 Calendar Days

Nike's most recent trend suggests a bullish bias. One trading opportunity on Nike is a Bull Put Spread using a strike $95.00 short put and a strike $90.00 long put offers a potential 25.94% return on risk over the next 30 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $95.00 by expiration. The full premium credit of $1.03 would be kept by the premium seller. The risk of $3.97 would be incurred if the stock dropped below the $90.00 long put strike price.

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

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

The RSI indicator is at 79.11 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


Nike Calls All the Rage Ahead of Earnings
Mon, 16 Dec 2019 19:56:46 +0000
Nike analyst sentiment is mixed coming into today

Not Over Yet: Twists And Turns Still Ahead Including Nike Earnings, Quadruple Witching
Mon, 16 Dec 2019 14:35:42 +0000
A lot of holiday packages got wrapped up last week, including a Phase One trade deal, a Fed meeting, and the UK election, but the week ahead still has a few bows left to tie. Several major earnings reports, with Nike Inc (NYSE: NKE) being one of them, highlight the coming days. There’s also key housing data and a “quadruple witching” (see more below).

Looking for That Perfect Holiday Gift? Try an Actual Stock Certificate.
Mon, 16 Dec 2019 14:24:00 +0000
If you want to give someone actual stock—that is, the physical stock certificate registered in the name of the recipient—there is a way to do that. It could be the perfect holiday gift for a child.

Peloton, Nike, Walmart and Other Brands Get Savaged Online, But Are Fine in Real Life
Mon, 16 Dec 2019 14:00:01 +0000
(Bloomberg Opinion) — For consumer brands and companies in 2019, the internet has laid bare two bewildering realities: It’s nearly impossible to stay out of politics. And when there is even a hint of political controversy, the outrage machine will spin itself into high gear.In the last year, hardly a week went by without some company — big or small, famous or obscure — finding itself at the center of a storm of online outrage: Most recently it was Peloton Interactive Inc. for a TV ad some saw as sexist. Last month, it was the restaurant chain Chick-fil-A Inc. for announcing that its charity would no longer make donations to organizations that had been criticized as anti-gay. Months earlier, it was Walmart Inc. for changing its ammunition sales policy after a mass shooting in El Paso, Texas. Before that, it was the boutique exercise chain SoulCycle answering for a major shareholder holding a fundraiser for President Donald Trump. In June, it was Wayfair Inc., for selling furniture that ended up in a migrant detention center. In January, it was Gillette for running ads about toxic masculinity.Such episodes prompt a flood of snarky denunciations and boycott threats on Twitter and Facebook. Eventually, after a raft of performative posts (dropping sneakers in the trash, smashing coffeemakers), the hashtag — and the media attention — fade away.And therein lies a lesson for corporate America: There is little evidence that these spasms of internet indignation cause a retailer long-term damage. Online chatter, it turns out, is a poor barometer of real-world consumer behavior. The penalty for taking a political stand, in terms of lost sales or damaged reputation, is far lower than commonly believed — if a company can manage it in a smart way.**In April 2018, two black men were sitting in a Starbucks in Philadelphia waiting for an acquaintance. When they failed to order anything, a store manager eventually called police, who led them from the café in handcuffs. The incident, which was captured on video and posted on Twitter, was particularly galling for Starbucks Corp., which claims to value diversity so much it once encouraged its baristas to initiate conversations about race with customers.The fury flowed fast and furious on social media. A sample tweet: “I’d rather drink instant then give u one more dime of my interracial family’s money. Seems it doesn't matter to u anyway BoycottStarbucks.”Back in the real world, however, customers largely stuck to their caffeine routines. In the days immediately following the incident, research firm GlobalData asked U.S. adults what actions they intended to take toward Starbucks. Even then, with the story still fresh, most U.S. respondents — 61% — didn’t plan to do anything. Two weeks later, in a subsequent survey, even fewer people had actually taken any action.The coffee chain’s shares, meanwhile, hit an all-time high in July after it recorded its strongest quarterly comparable sales since 2016. Traffic has now increased to restaurants in its Americas division for two consecutive quarters, ending a run of mostly weak performance on this measure that had dogged it since long before the Philadelphia incident.GlobalData conducted similar surveys around Nike’s September 2018 advertising campaign with former NFL quarterback Colin Kaepernick, who had become a cultural lightning rod after kneeling during the national anthem before games in protest of police treatment of black people. The pattern was the same — 71% of U.S. adults never planned to take any action, and when the story faded from the headlines later that month, even fewer had actually done so.Beyond these high-profile incidents, consumers generally don’t show much propensity to vote with their wallets. A Morning Consult survey from earlier this year found that less than half of shoppers have ever taken action based on a brand’s political stance.Only 16% of consumers, the survey says, report posting to their social media accounts because of a political stance by a company. So a gusher of angry tweets about a company is likely to be coming from a subset of that 16%. This group isn’t necessarily reflective of America’s shoppers — much less any specific brand’s target audience.Researchers at YouGov regularly survey shoppers about brands. Their data show an interesting dichotomy: When a company gets ensnared in an outrage cycle, it often sees a decline in its “buzz score,” a measure of whether consumers are hearing something positive or negative about a brand. But purchase intent, a measure of how likely a shopper is to buy from a given brand, often barely budges at all, or at least doesn’t move as drastically as the buzz score.It’s not entirely surprising, of course, that outrage surfaces frequently in online discussions of retailers and consumer brands. Outrage is the default mode of so much social media conversation, whether in politics or pop culture.But these expressions are often no more than exercises in virtual virtue-signaling. This may be considered a drawback in politics — former President Barack Obama recently criticized young people for mistaking tweeting for activism — but that’s not necessarily the case for brands and retailers. Disgruntled consumers retweet their support of a Chick-fil-A boycott, or post a meme on Facebook encouraging others to shun Target, and leave it at that.After all, why go to the trouble and expense of replacing your iPhone after the president calls for an Apple Inc. boycott when you can just hold forth about it on the internet? Once you get validation online, says Brayden King, a professor at Northwestern University who has studied consumer boycotts, “it’s very easy to stop.”There’s an additional consideration: The sheer volume of digital infernos makes it hard to stay focused on any one of them. It’s not just that the outrage is fleeting; it’s that it’s spread so thin.Consider just how many targets U.S. consumers have raged against online in recent years: Home Depot, over its co-founder’s support of President Donald Trump’s campaign. Walmart, for the aforementioned gun policy and for allowing “Impeach 45” t-shirts to show up on its website. Inc., for its worker policies. H&M, for a photo of a kids’ sweatshirt that was perceived as racist. Gucci, for a sweater that was reminiscent of blackface. Prada, for Sambo-like monkey dolls. Target, for allowing transgender customers to use the store bathrooms that correspond with their identities. Pepsico Inc., for a commercial that was tone deaf about the Black Lives Matter movement. Nordstrom Inc., for dumping Ivanka Trump’s clothing line. Victoria’s Secret, for its sex-bomb imagery in the MeToo era. Jimmy John’s, for an old photo of its founder hunting elephants.You get the idea (and that’s just a sampling of the ire against retailers that sell stuff; there is a whole other backlash against Big Tech). Again: It may be disappointing to their supporters that so many of these campaigns flame out, at least in part because it’s simply too hard for most people to stay mad about so many things at once. But for the targets of the campaigns, there is safety in numbers.**Michael Jordan’s famous (and possibly apocryphal) quote — “Republicans buy sneakers, too” — neatly sums up why retailers have so long avoided wading into politics. But it is entirely possible for consumer companies to take a stand and not end up the worse for  it. For one, some issues are simply not that controversial.This issue-by-issue variance helps explain why studies seem to present conflicting data about shoppers’ attitudes. For example, the Global Strategy Group study found that 79% of respondents agreed with the idea that “corporations should take action to address important issues facing society.” Yet a Morning Consult study from earlier this year found that a majority of respondents thought corporations should “stick to what they do, and generally not get involved in political or cultural matters.”This is likely about the phrasing. Respondents might hear “important issues facing society” and think of equal pay or the environment. When they hear “political matters,” they might think of divisive issues such as abortion or immigration.So retailers should choose wisely which causes to champion. Sometimes this is easy, especially when brands have a clear identity and customer base. So Patagonia supports the environment, while Nike’s Kaepernick ad appeals to its young urban customers. But even if a retailer does wade (or get dragged) into a more divisive issue, there are effective playbooks.After the El Paso shooting, for example, Walmart took a full month to revise its ammunition sales policies. And its overtures were incremental, not drastic: It said the lapsed assault weapons ban “should be debated” by Congress, for example, but didn’t go so far as to say it should be reinstated.What were the consequences? Walmart just reported that U.S. comparable sales rose 3.2% from a year earlier in the latest quarter, a healthy increase that is on par with the growth it had been posting for two years before the incident. Executives said last month they had not seen signs of a backlash. It’s almost as if the whole thing never happened.Dick’s Sporting Goods Inc., meanwhile, didn’t just stop selling assault-style rifles after the February 2018 mass shooting in Parkland, Florida; CEO Ed Stack wrote a book and gave interviews explaining his decision. He has said they heard from many angry customers and the company estimates it has cost it $250 million in sales.Nearly two years later, Dick’s has returned to comparable sales growth and is even experimenting with getting out of the hunting business altogether in more than 125 stores. Sales grew in those stores in the latest quarter as it reallocated that space to other departments. And the company said its gross margin improved recently in part thanks to its pullback from the hunting category — a benefit the company would never have realized had it not taken a stand.In the wake of the Philadelphia arrests, Starbucks closed thousands of its cafes for an afternoon of racial-bias training. The closures cost the chain about $17 million in sales, but it was a small price to pay for the message it sent that the company was taking the incident seriously.  Even political firestorms that aren’t handled particularly deftly can disappear. When Macy’s Inc. dropped Trump’s clothing line in 2015, it initially said it did so because of his “disparaging characterizations” of Mexican immigrants. Later, after Trump called on his supporters to boycott Macy’s, then-CEO Terry Lundgren cast the decision different light, saying: “If Hillary Clinton had a handbag collection, we wouldn’t be carrying that, either.” Despite the incoherence, the issue quickly faded. Macy’s has had plenty of problems in the years since, but it’s hard to argue that any of them have been the result of Trump’s call for a boycott.The lesson may not be obvious, but it is clear: With strong strategy — or a little serendipity — outrage cycles can be a footnote, not a chapter, in a company’s history. A bunch of enraged tweets are not a gauge of consumer sentiment or evidence of an actual boycott. However hot and bright these controversies flare online, in the real world they simply don’t leave much of a burn.— Graphics by Elaine He and Lara WilliamsTo contact the author of this story: Sarah Halzack at shalzack@bloomberg.netTo contact the editor responsible for this story: Michael Newman at mnewman43@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Sarah Halzack is a Bloomberg Opinion columnist covering the consumer and retail industries. She was previously a national retail reporter for the Washington Post.For more articles like this, please visit us at©2019 Bloomberg L.P.

How to Make Money Out of Misery
Mon, 16 Dec 2019 12:02:22 +0000
(Bloomberg Opinion) — Billionaire Mike Ashley has unpacked a haul of good news from his giant Sports Direct bag, the first investors in the sportswear-to-statement jacket empire have enjoyed for a while.After a dismal showing in July — when Sports Direct International Plc first delayed its full-year earnings statement, and then accompanied it with news it faced a surprise tax bill in Belgium potentially worth 674 million euros ($750 million) — the bar for doing better was pretty low.But the group seems to be stabilizing after the tumultuous period in the wake of its acquisition of the troubled House of Fraser department store chain in August 2018.For now, Sports Direct hasn’t split out House of Fraser’s sales and profits. Instead, the storied British chain has been lumped in with the premium lifestyle division, which includes the upmarket Flannels boutiques. In the half year to Oct. 27, the unit made a loss on an underlying Ebitda basis of 5.6 million pounds, compared with a deficit of 29 million pounds in the year-earlier period.This implies House of Fraser’s losses shrunk noticeably. Tony Shiret at Whitman Howard estimates the loss at about 10 million pounds, compared with 31.5 million pounds previously.This all led Ashley to declare “green shoots of recovery” at the department store. More importantly, he also had good news for the outlook. The company now expects full-year underlying Ebitda of between 356.4 million pounds and 390.3 million pounds. That’s up by between 5% and 15% — the range the company has historically targeted — from 339.4 million pounds in the year to April 2019, excluding House of Fraser.Ashley also provided reassurance on the Belgian tax bill, saying that it won’t be such a big problem after all, and should not lead to a material charge. Finally, a 120 million-pound sale and leaseback for Sports Direct’s Shirebook campus has helped to halve net debt, which had been ratcheting up.The shares rose as much as 27%. But investors shouldn’t get too ahead of themselves. First of all, there is still work to do at House of Fraser. While the group will move forward with a number of stores under the Frasers banner — also the new name for Sports Direct — more outlets will close. Sports Direct must also convince the luxury brands to back his Frasers vision, although this should receive a boost from the Flannels offering. Brands such as Burberry Group Plc were much in evidence at Flannels’ new flagship on London’s Oxford Street.While much attention has focused on House of Fraser, it and Flannels are still a small part of the group. It is the core Sports Direct sportswear stores that drive the performance. Here sales, excluding acquisitions, fell 8.6%, as Sports Direct took the division upmarket. Revamped stores are performing well, and selling more expensive items, together with less discounting, is bolstering margins. But the group can’t let up the pace of these refurbishments. Ashley will have to convince the big sportswear brands, Nike Inc. and Adidas AG to supply it with their hottest sneakers, just at a time when Nike is becoming more choosey about who it sells to.And let’s not forget the risk of impulsive action from Ashley himself. The strategy of taking advantage of others’ misery by acquiring brands to sell in his stores is a sensible one. But the dangers of overstretch, as well as unconventional corporate governance moves, are ever present.Compared to this time last year, Sports Direct has things under more control. Investors will be looking out to see if the same can the same be said of its unpredictable founder.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at©2019 Bloomberg L.P.

Be Sociable, Share!

Related Posts


MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

This company makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options. The educational training program and software services are provided to improve financial understanding.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.