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52-Week High Alert: Trading today’s movement in NIKE

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Quantchabot has detected a promising Bull Call Spread trade opportunity for NIKE (NKE) for the 28-Feb-2020 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

NKE was recently trading at $104.08 and has an implied volatility of 15.00% for this period. Based on an analysis of the options available for NKE expiring on 28-Feb-2020, there is a 34.14% likelihood that the underlying will close within the analyzed range of $104.28-$110.09 at expiration. In this scenario, the average linear return for the trade would be 64.72%.

52 week high: NIKE recently reached a new 52-week high at $104.23. NKE had traded in the range $77.07-$103.89 over the past year.

Trade approach: Reaching a new 52-week high is a bullish indicator, so this trade is designed to be profitable if NKE maintains its current direction and does not revert back to pricing on the bearish side of $104.08 on 28-Feb-2020. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bullish strategy, the trade would be profitable if NIKE closes at or above $104.18 on 28-Feb-2020. Based on our risk-neutral analysis, there is a 50.73% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.

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