Options Trading News

September 23, 2016  Fri 7:47 AM CT


Traders are showing caution in Nike ahead of quarterly results next week.

optionMONSTER's monitoring program shows that some 8,300 Weekly 55 puts expiring on Sept. 30 were purchased for $0.87 to $1.20 yesterday. This represents fresh buying, as volume was well above the strike's open interest of 2,463 contracts.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

NKE rose 0.13 percent to $55.41 yesterday but is down 6 percent in the last month. The athletic-apparel retailer is scheduled to report quarterly results after the market closes on Tuesday.

Overall option volume in the name was twice its daily average yesterday. Puts outnumbered calls by a narrow margin.

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