You might be wondering why the Nike April 105- and 100-strike puts are so active today.
Are options traders concerned about rising input costs and a slowing global consumer? Maybe. Perhaps they saw the disappointing monthly sales in McDonalds– driven by poor results in Europe – and got skittish on Nike’s international exposure.
Or perhaps they just saw last Friday’s Options Action, where Dan Nathan of Riskreversal.com laid out a bearish trade incorporating all the above points.
Specifically, Nathan suggested buying the April 105/100 put spread in Nike for $0.90. His trade and breakdown are below.
DAN’S NIKE OPTIONS TRADE
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