Are you looking to capitalize on a potential turnaround in the market? Nike, a well-known brand that has recently underperformed the market and its sector, may be presenting a unique opportunity for investors. At Extreme Investor Network, we believe that with growth expectations on the rise and valuation near historical lows, now might be the time to consider a comeback play on Nike.
Nike (NKE) has shown resilience by forming a triple bottom at the $90 support level over the past few years and has recently bounced off this key level. Analysts are now predicting a second-half recovery in sales declines, especially with the upcoming Paris Olympics and signs of a rebound in China’s growth. With a gap above at $100 and a short-term upside target of $105, there is potential for solid gains in the near future.
While options on NKE may be expensive due to high implied volatility, our experts recommend using a vertical spread strategy to offset costs and maximize potential profits. For instance, consider buying the June $92.50/$100 call vertical at a $2.99 debit. This strategy allows investors to risk a total of $299 per contract with the potential to profit $451 per contract if NKE surpasses $100 at expiration.
Remember, investing always carries risks, and it’s important to do your own research and consult with a financial advisor before making any decisions. At Extreme Investor Network, we provide valuable insights and strategies to help you navigate the world of investing with confidence. Stay tuned for more expert tips and advice on maximizing your investment opportunities.
