NEW DIRECTIONAL PUT PLAYS

Nike Inc. - NKE - close: 79.77 change: -0.59

Stop Loss: 84.05
Target(s): 75.50
Current Option Gain/Loss: Unopened
Time Frame: 2 to 3 weeks
New Positions: Yes, see trigger

Company Description

Why We Like It:
The most recent same-store sales data for the industry was disappointing and suggested the consumer might be slowing down. That doesn't bode well for NKE. The stock has already broken its trend of higher lows and broken down through its major moving averages. Aggressive traders may want to buy puts now. I suspect that NKE is a little bit oversold here so I would rather use a trigger to launch put positions at $81.75. If triggered we'll use a stop at $84.05. Our target is $75.50 but we'll adjust the target as the trade progresses. NKE is due to report earnings on June 27th and we do not want to hold over the announcement.

Trigger @ $81.75

- Suggested Positions -

buy the July $80 PUT (NKE1116G80) current ask $2.82

Annotated Chart:

Entry on June xxth at $ xx.xx
Earnings Date 06/27/11 (confirmed)
Average Daily Volume = 2.3 million
Listed on June 6th, 2011