Nike's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bearish stance on Nike NKE.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with NKE, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 10 uncommon options trades for Nike.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 70%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $292,022, and 4 are calls, for a total amount of $263,124.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $82.5 to $110.0 for Nike during the past quarter.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of Nike stands at 1347.12, with a total volume reaching 1,790.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Nike, situated within the strike price corridor from $82.5 to $110.0, throughout the last 30 days.

Nike Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Nike

Nike is the largest athletic footwear and apparel brand in the world. Key categories include basketball, running, and football (soccer). Footwear generates about two thirds of its sales. Its brands include Nike, Jordan, and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores, and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.

After a thorough review of the options trading surrounding Nike, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of Nike

• With a volume of 1,886,968, the price of NKE is down -0.85% at $102.73.
• RSI indicators hint that the underlying stock may be oversold.
• Next earnings are expected to be released in 70 days.

Professional Analyst Ratings for Nike

In the last month, 5 experts released ratings on this stock with an average target price of $119.8.

• Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on Nike with a target price of $129.
• An analyst from Piper Sandler persists with their Neutral rating on Nike, maintaining a target price of $107.
• An analyst from Citigroup has elevated its stance to Buy, setting a new price target at $135.
• An analyst from TD Cowen downgraded its action to Market Perform with a price target of $104.
• An analyst from Raymond James persists with their Outperform rating on Nike, maintaining a target price of $124.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Nike, Benzinga Pro gives you real-time options trades alerts.