Nike's Options Activity: Trends and Analyst Insights Revealed

Nike's Options Activity: What Investors Should Know

Recently, investors showed a marked bearish sentiment towards Nike (NKE), signaling a trend that market watchers need to be aware of. Observing public options records has unveiled interesting developments regarding this prominent stock. While the identities of these investors remain a mystery, the significant movement in NKE usually hints at upcoming changes.

Today's analysis draws attention to noteworthy options activities surrounding Nike, where our tracking revealed 17 exceptional occurrences. Such heightened activity sets a stage for potential market shifts, revealing that investor sentiment is mixed—notably with 35% favoring a bullish outlook while 52% exhibit bearish tendencies.

Understanding Expected Price Movements

Analyzing Nike's recent options contracts offers insights into the expectations for its stock price movement. By studying the volume and open interest, we can see that large investors have their sights on a price range between $50 to $90 for Nike over the past quarter. This strategic targeting suggests a carefully thought-out investment approach.

Volume and Open Interest Analysis

Diving deeper into volume and open interest provides traders with the necessary information to make informed decisions. Monitoring these metrics not only unveils liquidity but also reveals overall interest in Nike’s options tied to various strike prices. During the last 30 days, a detailed look showcases the progression of both calls and puts, giving traders a glimpse into the underlying market dynamics.

Snapshot of Nike's Option Volume & Interest

The latest snapshot of Nike's options reflects significant trades. For those keen on understanding the market intricacies, examining the calls and puts traded can offer valuable insights into future potential movements.

Key Options Trades Highlights

Here's a glance at some of the biggest options observed recently for Nike:

Symbol: NKE
PUT/CALL: PUT
Trade Type: TRADE
Sentiment: BULLISH
Expiration Date: 10/18/24
Ask: $2.35
Bid: $2.27
Price: $2.30
Strike Price: $75.00
Total Trade Price: $115.0K
Open Interest: 9.0K
Volume: 531

Symbol: NKE
PUT/CALL: CALL
Trade Type: SWEEP
Sentiment: BULLISH
Expiration Date: 12/20/24
Ask: $3.50
Bid: $3.40
Price: $3.50
Strike Price: $85.00
Total Trade Price: $114.7K
Open Interest: 2.5K
Volume: 859

Symbol: NKE
PUT/CALL: CALL
Trade Type: TRADE
Sentiment: BEARISH
Expiration Date: 01/17/25
Ask: $8.60
Bid: $8.55
Price: $8.55
Strike Price: $75.00
Total Trade Price: $85.5K
Open Interest: 7.5K
Volume: 113

About Nike

Nike stands as the globe's leading athletic footwear and apparel brand, dominating various categories including basketball, running, and football (soccer). Footwear alone is responsible for about two-thirds of its total sales. Well-recognized brands under Nike include Jordan, noted for premium athletic footwear, and Converse for casual footwear. The company's products reach consumers globally through company-owned, franchised, and third-party retail channels. Additionally, Nike seamlessly integrates e-commerce into its operations across more than 40 countries while relying predominantly on external manufacturers situated in over 30 countries. Established in 1964, Nike's headquarters is located in Beaverton, Oregon.

Now, let’s shift our focus to the current performance metrics that impact Nike’s market position.

The Current Position of Nike

• The current stock price for NKE is $77.77, reflecting a 2.16% decrease with a trading volume of 5,737,203 shares.
• Relative Strength Index (RSI) indicators convey a neutral state for the stock, hovering between overbought and oversold conditions.
• The next earnings announcement is on the horizon, anticipated to be released soon.

What Experts Are Saying About Nike

In the past month, three professional analysts assessed Nike's stock with a calculated average target of $84.00. Here's a breakdown of their insights:

• An analyst from Stifel maintains a Hold rating for Nike, projecting a target price of $79.
• An analyst from Piper Sandler has taken a conservative stance, downgrading to Neutral with an anticipated price target of $80.
• Conversely, optimism shines through an upgrade by an analyst from Williams Trading, who raised their recommendation to Buy with a revised target of $93.

Engaging in option trading presents its obstacles, yet it opens the door to considerable profit potential. Seasoned traders manage these risks through continuous learning, strategic modification of their trades, utilization of a range of analytical tools, and staying mindful of market changes.

Frequently Asked Questions

What does the recent bearish activity on Nike suggest?

The bearish options activity indicates that some investors are anticipating a potential downturn in Nike’s stock, which may signal upcoming volatility or challenges.

What is the current stock price of Nike?

Nike's current stock price is $77.77, with a slight decline of 2.16% registered recently.

How do analysts perceive Nike’s future?

Analysts show mixed sentiments on Nike, with a collective average price target set at $84.00, reflecting cautious optimism and varying ratings among them.

What is the significance of open interest in options trading?

Open interest indicates the total number of outstanding options contracts, allowing traders to gauge market interest and liquidity for specific strike prices associated with Nike.

Is trading options with Nike risky?

Yes, trading options involves risks; however, strategic planning, education, and continuous market awareness can help mitigate these risks effectively.

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