That implied move is only slightly higher than the 5.1% shift that Nike has made in either direction after earnings over the last eight quarters, and the stock is currently just 5% from new all-time highs, with much of the activity in the options market bullish about Nike making the leap.
"Most of the betting in the options market was bullish [on Wednesday]," said Khouw. "The 105-strike was the most active one. The [contract] I was looking at was the July 2 weekly 105-call, those were trading for about $1.30." Those calls break even at a stock price of about $106.30, or more than 6% higher than where Nike closed Wednesday's session, meaning these traders are betting on Nike to surge well into uncharted territory on the upside.
However, whether these traders are looking toward an even bigger post-earnings breakout, or just taking advantage of surprisingly inexpensive options premium prices remains to be seen. "These are very cheap options," said Khouw, "They cost just a little over 1% of the stock price, and that might be why one of the reasons, with [Nike] toying with this key level, that options traders are looking to toy with that strike in particular."
Well that didn't happen 😁
Nike has a Price-to-Earnings ratio of 37 which is absurd. Their earnings will never grown into this valuation.