Nike (NKE) Offering Possible 37.36% Return Over the Next 3 Calendar Days

Nike's most recent trend suggests a bearish bias. One trading opportunity on Nike is a Bear Call Spread using a strike $82.50 short call and a strike $87.50 long call offers a potential 37.36% return on risk over the next 3 calendar days. Maximum profit would be generated if the Bear Call Spread were to expire worthless, which would occur if the stock were below $82.50 by expiration. The full premium credit of $1.36 would be kept by the premium seller. The risk of $3.64 would be incurred if the stock rose above the $87.50 long call 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 down which suggests that the medium-term momentum for Nike is bearish.

The RSI indicator is at 37.04 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


LATEST NEWS for Nike

Coach and Versace attacked in China for Hong Kong reference
Mon, 12 Aug 2019 05:41:32 +0000
Coach and Versace have become the latest foreign brands to face a backlash from internet users in China, drawing fierce criticism across social media for referring to Hong Kong and Taiwan as countries. Chinese internet users on Monday circulated an image of US luxury brand Coach’s English-language website that showed both regions could be selected under a menu titled “countries”. In a statement on Weibo, China’s version of Twitter, Coach apologised and said it had corrected its website, adding that it “is committed to long-term development in China and respects the feelings of the Chinese people”.

Where Will Under Armour Be in 5 Years?
Sun, 11 Aug 2019 15:44:00 +0000
The underdog footwear and apparel maker will struggle to win back the bulls.

Dow Jones Today: We’ve Seen This Movie Before
Fri, 09 Aug 2019 20:11:58 +0000
Friday was another rough day for stocks. Guess why? President Donald Trump made some comments about the status of the trade relationship with China. The U.S. and China are set to hold trade talks in September, and though things have been contentious between the world's two largest economies, those talks remain on the schedule.However, President Trump gave market participants more than they wanted to ponder on a summer Friday, noting that he seems to be OK with the talks happening or not."We'll see whether or not we keep our meeting in September," said Trump at the White House today. "If we do, that's fine. If we don't, that's fine."InvestorPlace – Stock Market News, Stock Advice & Trading TipsRemember that on Sept. 1, assuming no trade resolution is agreed to before that date, the U.S. will impose a 10% tariff on another $300 billion worth of Chinese goods. That would go on top of the 25% tariff on $250 billion worth of Chinese products already in place. * 8 Dividend Aristocrat Stocks to Buy Now No Matter What On the back of those comments, the Nasdaq Composite lost 1% while the S&P 500 gave back about two-thirds of a percent. The Dow Jones Industrial Average headed into the weekend with a Friday loss of 0.34%.As for today's Dow losers, it was a list of the usual suspects thanks to the president's trade comments. Caterpillar (NYSE:CAT), Nike (NYSE:NKE) and all of the Dow's technology components closed lower on the day. Bad Big BlueOn a light news day specific to the stock, IBM (NYSE:IBM) tumbled by 2.84%, extending its weekly slide to over 8%. IBM's Friday woes were likely attributable to the China comments offered by the president. This recent pullback in the stock could give investors reasons to consider the name, particularly as IBM integrates Red Hat into the fold, which is widely viewed as a positive catalyst for the shares. Predictable VictimShares of Intel (NASDAQ:INTC) slid 2.52% today, meaning the stock is about 23% below its 52-week high. That's a bear market and then some. Semiconductor stocks have been at the epicenter of the trade spat with China because the U.S. is taking a hard line against U.S. technology companies working with controversial Chinese telecom firm Huawei Technologies.A slew of domestic chip makers have pressured the White House to allow them to do some business with Huawei, but these relationships are in a tenuous spot right now, so much that the Chinese company is taking steps to reduce its dependence on American technology. Surprising Refuge on the DowMicrosoft (NASDAQ:MSFT) traded lower today, but shares of the largest U.S. company by market value have been steady over the past week and there are inklings the stock is becoming something of a safe-haven for adventurous, though tariff-weary investors.Software companies like Microsoft are not 100% tariff-immune, but "they may hold up better than some consumer technology names that manufacture products in China, according to Rishi Jaluria, senior research analyst at D.A. Davidson," according to CNBC. Bottom Line on the Dow TodayMcDonald's (NYSE:MCD) was easily the best-performing name in the Dow today, gaining 1.43% on its way to a third consecutive record high. Shares of the burger giant have more than doubled in four years and with stock up about 25% this year, it's safe to say this is another fine avenue for skirting tariff controversy.McDonald's was one of the Dow stocks that closed higher today, but with President Trump again being aggressive on trade, broader benchmarks were surprisingly resilient to close the week.For now, Trump is backing off matching the Chinese with a currency devaluation that gets us back to a familiar place: relying on a Federal Reserve rate cuts to weaken the greenback. The Fed may have no choice to again oblige the president if the trade war heats up or doesn't cool off.Todd Shriber doesn't own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Aristocrat Stocks to Buy Now No Matter What * 7 Stocks to Buy to Ride the Vegan Wave * 4 Safe Stocks to Buy Amid Trade War Turbulence The post Dow Jones Today: We've Seen This Movie Before appeared first on InvestorPlace.

Adidas basketball shoes stand out amid weak Q2 earnings
Fri, 09 Aug 2019 15:32:04 +0000
Adidas saw revenue growth of 4% in Q2, but the company's earnings came in slightly below forecasts. However, one area where the German sportswear giant made unexpectedly impressive gains was in the basketball market.

Sports Direct Billionaire Mike Ashley Spins Out of Control
Fri, 09 Aug 2019 07:00:17 +0000
(Bloomberg Opinion) — A year ago, Mike Ashley was being hailed as a possible savior of Britain’s rapidly depopulating shopping districts. Now, after the comically delayed announcement of his company’s annual results last month, the colorful sportswear billionaire looks like just any other struggling retailer.It’s 12 months since his Sports Direct International Plc struck a deal to acquire the ailing department store chain House of Fraser. Ashley, who had long stalked the business, now regrets the move. The acquired business has had an instantly negative effect on the wider group, which showed up starkly in its results statement.House of Fraser’s poor trading shouldn’t really have surprised anyone after years of chronic under-investment. Add in supplier problems and cautious consumers and it racked up more than 50 million pounds ($61 million) of losses from August to the end of Sports Direct’s financial year on April 28. Ashley is even losing money on House of Fraser stores where he’s paying no rent.While this hasn’t turned out to be the “Harrods of the high street” of Ashley’s dreams, he did at least manage to limit some of his financial exposure. Sports Direct paid 90 million pounds for the assets, and invested a similar amount in working capital, but it did pick up House of Fraser’s shop stock too. That might have been worth more than the purchase price.Ashley was never likely to keep all of House of Fraser’s stores. He’s still planning more upmarket outlets in Glasgow, Belfast, Liverpool and Newcastle. He’s keen too to sell more of the designer labels that have made his Flannels chain of smaller stores a hit, so having bigger flagship department stores will help. Many House of Frasers will probably be closed though.Ashley, who’s been targeted by U.K. politicians before because of his employment practices, can legitimately say he’s tried to save jobs. But turning around a chain with “terminal” problems (his words) was just too difficult. While he will no doubt be criticized, stemming financial losses and making Frasers – the new name for the high-end chain – smaller and higher quality make sense.Nevertheless, even this more limited ambition is a huge challenge, and his company has problems elsewhere. Its strategy of improving the attractiveness of its core Sports Direct stores – known for their “pile ‘em high and sell ‘em cheap” approach – hasn’t gained traction yet. Nike and Adidas are still reluctant to supply it with the latest sneaker models.An unexpected 674 million euro ( $754 million) tax bill – which caused that embarrassing delay in the results – was another unwelcome surprise and smacks of a group that’s spinning out of control. Indeed, Sports Direct’s management has been stretched thin by a string of Ashley investments that have also included Game Digital, a video game retailer, and Jack Wills, a struggling apparel supplier to affluent teens. This has been compounded by the departure of key executives, including the head of retail Karen Byers.In the current climate, Ashley’s strategy of having lots of high street property, in which he can drop different brands (which he usually buys on the cheap) appears sensible. In a distressed market, why not try to take advantage of the misery elsewhere? He might still take a fresh tilt at Debenhams, another British department store chain that’s now owned by a group of lenders and hedge funds.But Sports Direct appears to be fighting fires on too many fronts. Investors, who have pushed the shares down by 42% in a year, are right to be skeptical. Ashley has to win over the big brands for his Sports Direct chain, and some luxury names at House of Fraser. Given the history of his stores, that won’t be easy.While net debt is forecast to remain an undemanding 1.5 times in the current financial year, according to analysts, and the Sports Direct chain still generates cash, upgrading stores and making strategic investments isn’t cheap.  As I’ve argued before, Sports Direct would be better off as a private company. Ashley, who owns 62% of the shares, says he has no intention of doing this because without outside shareholders he would be “uncontrollable.” But it’s hardly as if he’s been reined in by the demands of being a listed company.As it is, minority investors have little option than to hope he makes the right choices from here. There may yet be method in the Ashley madness, but he needs to prove that the last year wasn’t all just folly.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@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 bloomberg.com/opinion©2019 Bloomberg L.P.

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