Nike Stock fell today as expected after yesterday’s earnings. This stock was discussed in the morning Investing Strategy Notes.
Nike Stock (NKE)
Trade 1:
Sold 20 put contracts for Mar 26 2021 expiry at the $126.00 put strike for $0.41 = $820.00
Bought 20 put contracts for Mar 26 2021 expiry at the $95.00 put strike for $0.03 = ($60.00)
Buy To Close Early Offer: I am offering $0.10 to start and will reduce that amount as the trade moves toward expiry.
Trade Stats:
Approx Stock Price: $136.00
Approx Percent Of Protection: 7.4%
Stock Would Have To Fall To Reach Short Put: $10.00
Credit Put Spread Size: $31.00
Capital At Risk: $62,000.00
Potential Profit If Held To Expiry: $760.00
Potential Return If Held To Expiry: 1.2%
Trade 2:
Sold 10 put contracts for Apr 1 2021 expiry at the $126.00 put strike for $0.62 = $620.00
Bought 10 put contracts for Apr 16 2021 expiry at the $105.00 put strike for $0.08 = ($80.00)
Buy To Close Early Offer: I am offering $0.25 to start and will reduce that amount as the trade moves toward expiry.
Trade Stats:
Approx Stock Price: $136.50
Approx Percent Of Protection: 7.7%
Stock Would Have To Fall To Reach Short Put: $10.50
Credit Put Spread Size: $21.00
Capital At Risk: $21,000.00
Potential Profit If Held To Expiry: $540.00
Potential Return If Held To Expiry: 2.6%
Trade 3:
Sold 20 put contracts for Apr 16 2021 expiry at the $125.00 put strike for $0.74 = $1,480.00
Buying 20 put contracts for Apr 16 2021 expiry at the $105.00 put strike for $0.05 = ($100.00) – NO FILLS YET
Buy To Close Early Offer: I am offering $0.30 to start and will reduce that amount as the trade moves toward expiry.
Trade Stats:
Approx Stock Price: $136.50
Approx Percent Of Protection: 8.4%
Stock Would Have To Fall To Reach Short Put: $11.50
Credit Put Spread Size: $20.00 when filled.
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. You always trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. The author assumes no liability for your investment decisions. Read the full disclaimer.