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On Friday’s CNBC’s Options Action, the crew analyzed Nike’s recent underperformance after vastly outperforming the market for almost 3 decades. Nike and their competitors have underperformed the market since the election as equities prints new all-time highs. A head and shoulders formation coupled with breaking uptrend support suggests a possible top. Additionally, Nike will be announcing earnings next week after disappointing on 3 of their last 4. Expecting this stock to move lower, Michael Khouw suggested buying a Jan 50/47.5 Put Spread for $0.65 Debit.

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View this OptionsPlay on NKE