Credit Spread Idea in Athletic Footwear Leader
Nike (NKE) has been pulling back to support near the 55-day MA after a strong run this summer following a big earnings gap higher in June. On Friday, shares retested the top edge of value area for the prior month and VPOC support near 160. Nike appears to be a fairly good candidate for a bull put spread setup with the uptrend intact and short-term RSI reading oversold. Earnings are due at the end of September so we could see a bounce back into the 170s before then. Option flows have seen recent buyer of October 175 calls for $1M.