Title: Unleashing the Potential of Nike: A Hidden Gem in the Market
As experts in investing, we at Extreme Investor Network are always on the lookout for opportunities that others may overlook. One such opportunity that has caught our attention is Nike (NKE). While the stock has been underperforming the market and its sector since mid-2021, we believe that there are compelling reasons to start paying attention to Nike again.
Analysts have recently revised their growth expectations for Nike, signaling a potential turnaround. The stock is currently trading at historical lows in terms of valuation, presenting investors with an attractive entry point. Additionally, the potential for growth in China and the upcoming Olympics this year further add to the optimistic outlook for Nike.
Looking at the technical analysis, Nike has shown strong support at the $90 level, forming a triple bottom pattern over the past few years. The stock has recently bounced higher off this support and is now testing the $95 resistance level. With a gap above at $100, our short-term target is to fill that gap and potentially reach the $105 level.
In light of the higher implied volatility in the options market, our preferred strategy is to be a seller of options. For instance, selling the July $95/$90 put vertical at a $1.99 credit allows investors to maximize their profits if Nike rises by just $0.26 or more by the expiration date.
It’s important to note that the above content is for informational purposes only and should not be taken as financial advice. We advise readers to consult with their own financial or investment advisor before making any decisions. For a full disclaimer, please click here.
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