Market News

November 30, 2016  Wed 7:47 AM CT

A large investor is looking for gains in Nike but is shrinking the size of the trade.

OptionMonster's tracking program shows that 7,500 Weekly 51.50 calls expiring this Friday were sold for $0.13 while 3,500 December 52 calls were purchased for $0.37 yesterday. Volume was below open interest in the near-term contracts, indicating that a bullish position was rolled forward by four weeks to a higher strike but reduced in size.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

NKE fell 0.74 percent to $50.63 yesterday and is down 13 percent in the last three months. The athletic-apparel giant is expected to report earnings after the close on Dec. 22.

Overall option volume was about average in NKE yesterday.

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