4 Trade Ideas for Nike: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Nike, $NKE, comes into the week moving higher out of a falling wedge. It bottomed at 61.8% retracement of the post pandemic move higher and is now at short term resistance. The Bollinger Bands are opening higher. The RSI is rising into the bullish zone with the MACD positive and moving higher.

There is resistance at 117 and 120.50 then 123.50 and 128 before 132.25 and 140. Support lower comes at 114.25 and 104.50 before 100.25. Short interest is low at 1.2%. The stock pays a dividend with an annual yield of 1.06% and has been trading ex-dividend since June 3rd. The company is expected to report earnings next on September 21st.

The August options chain shows the biggest open interest at the 105 put with big size at the 105 call and smaller size at the 110, 115 and 120 strikes. In the September chain open interest builds from 135 down to a peak at 110 then tails to 80 on the put side. On the call side it builds fast to a lager peak at 130. The October chain covers the next earnings report. It has large open interest from 120 to 90 on the put side and extremely large open interest focused at 130 on the call side.

Nike, Ticker: $NKE

Trade Idea 1: Buy the stock on a move over 115 with a stop at 110.

Trade Idea 2: Buy the stock on a move over 115 and add a September 110/100 Put Spread ($2.10) while selling the October 130 Calls ($2.05).

Trade Idea 3: Buy the August/October 120 Call Calendar ($4.30) and sell the September 105 Put ($1.80).

Trade Idea 4: Buy the October 100/115/130 Call Spread Risk Reversal ($3.30).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with July in the books, saw equity markets were showing strength on the short term and on the cusp of a full blown reversal.

Elsewhere look for Gold to continue its short term move higher while Crude Oil consolidates. The US Dollar Index continues in a short term move lower while US Treasuries consolidate. The Shanghai Composite looks to continue in consolidation while Emerging Markets consolidate in the downtrend.

The Volatility Index looks to continue lower towards the normal range making the path easier for equity markets to the upside. Their charts look strong, especially on the shorter timeframe. On the longer timeframe both the IWM and SPY are approaching key levels to confirm an intermediate term reversal. The QQQ did confirm a reversal and now needs to show follow through. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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