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.
We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: CNBC Options Action