52-Week Low Alert: Trading today’s movement in NIKE $NKE

Quantchabot has detected a promising Bear Call Spread trade opportunity for NIKE (NKE) for the 23-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NKE was recently trading at $98.59 and has an implied volatility of 40.70% for this period. Based on an analysis of the options available for NKE expiring on 23-Sep-2022, there is a 35.41% likelihood that the underlying will close within the analyzed range of $95.88-$98.60 at expiration. In this scenario, the average linear return for the trade would be 38.46%.

52 week low: NIKE recently reached a new 52-week low at $98.46. NKE had traded in the range $99.53-$179.10 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if NKE maintains its current direction and does not revert back to pricing on the bullish side of $98.59 on 23-Sep-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if NIKE closes at or below $98.63 on 23-Sep-2022. Based on our risk-neutral analysis, there is a 50.44% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.