Option Trade 
Nike Inc (NYSE:NKE) Calls 
Tuesday, December 22, 2015

**OPTION TRADE: Buy the NKE Jan 2016 130.000 call (NKE160115C00130000) at approximately $4.40. Place a pre-determined sell at $8.00.

Note: No protective stop losses added -- but if you wish to do so make it $1.75.

by Ian Harvey

December 22, 2015

Nike Inc (NYSE: NKE), a seller of athletic footwear and athletic apparel worldwide, is scheduled to report its fiscal second-quarter results today, after market closes. Analysts are forecasting earnings of $0.85 per share. NKE has been a top performer this year, with shares appreciating 35.5% on the year.

Technical indicators for NKE are bullish and the stock is in a strong upward trend. NKE was recently trading at $130.25, down $5.05 from its 12-month high and $39.56 above its 12-month low. The stock has recent support above $125.70 and recent resistance below $132.90.

Nike has been on fire for the last two years, and there is little reason to expect that to change following the company's second-quarter report. If the company hits its forecast, it would translate to year over year earnings growth of 14.9%, but results could be sharply higher.

The stock is trading fairly close to its all-time high, but the valuation does not cause too much concern, with a P/E of 33.1 and forecast earnings growth of 13% in fiscal 2017 versus 2016. This sector is quite likeable as a whole, and NKE seems to be one of the best stocks at this time among its peers.

Of the 24 analysts who cover the stock, 19 rate it a "strong buy”, one rates it a "buy", and four rate it a "hold".

Expect another solid report and for the stock to trend higher on the news.

Therefore, based on the facts above, the following option trade is recommended…..

**OPTION TRADE: Buy the NKE Jan 2016 130.000 call (NKE160115C00130000) at approximately $4.40. Place a pre-determined sell at $8.00.

Note: No protective stop losses added -- but if you wish to do so make it $1.75.

”Success is simple. Do what's right, the right way, at the right time.”

Option Tip for your Success!
Options traders are not successful because they win.
Options traders win because they are successful.



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