Nike reported some excellent earnings on Tuesday after the markets closed. Their adjusted earnings came in at 50 cents beating general estimates of 43 cents. Overall sales rose 8% to $8.2 billion beating estimates by $100 million.
The company offered consumers bigger discounts which combined with some higher production costs to lower Nike’s profit margin from 45.6% to 44.2% year over year and inventories did creep higher by 9% to $5 billion and both of those figures are hurting the advance in the stock.
This strategy discussion article discusses morning trades done in Nike Stock along with the strategy to consider using for 2017 to bring in profits all year using Nike Stock.
Also includes is a look at setting up covered calls in Nike Stock for those investors who prefer Covered Calls, using the same strategy.
Nike Stock (NKE) Trade After Earnings -Dec 21 2016
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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.