Bull & Bear: Nike Inc. (NKE)

Shares of Nike Inc. NKE are currently trading lower on the session by 0.21%, at $79.94. With shares hovering around the $80.00 level, you have to wonder where they are headed next… Bulls: Bulls will say that shares are currently in the process of filling the recent sell off gap, which was put in place following disappointing earnings. Bulls will note the upward-sloping 20-day moving average as evidence that buyers have returned to the name. Bulls will also note that shares are trading above the key $78.00 support/resistance level. If the stock can firmly regain and hold the $80.00 level (also the 200-day moving average), shares could move significantly higher rather quickly. A bullish trader could buy the July $80/85/90 call tree for a net debit of $1.53, or 1.91% of shares. Bears: Bears have been noting the weak futures sales that Nike has been having for the past few quarters as evidence that shares were due for a fall. Apparently they were right, with shares now firmly in a downtrend. The 50-day is now downward sloping and the 200-day is in danger of doing so as well. If shares cannot regain the $80.00 level soon and hold it, that long-term average will begin to tick lower and force longs to reconsider their holdings. Bears will also note that the stock had trouble a few days ago around the $81.00 resistance level. A bearish trader could buy the July $80/75/72.50 put tree for a net debit of $0.86 or 1.08% of shares. NIKE, Inc. is engaged in design, development and marketing of footwear, apparel, equipment and accessory products. It is a seller of athletic footwear and athletic apparel in the world. It sells its products to retail accounts, through NIKE-owned retail, including stores and Internet sales, and through a mix of independent distributors and licensees, in over 170 countries around the world. NIKE's athletic footwear products are designed primarily for specific athletic use. It also markets footwear designed for aquatic activities, baseball, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic and recreational uses.