Nike options are kicking up into earnings.
let’s look at weekly options that expire this Friday, June 27th and next Thursday, July 3rd. The market will be closed for 4th of July, next Friday.
Nike stock has had its own version of fireworks. As the World Cup rolls on, the stock has been trending higher. Nike reports earnings after the close. The stock is trading $76. Weekly options expiring today, Friday June 27th. 76 and 77 strike calls are active, volatility is spiking at 105% and the straddle suggests a 4.5% move up or down off earnings. Right now, there are more calls than puts trading. On my In The Money show, Trader Scott Bauer is noting puts that were active earlier. Feel free to click onto ITM for his trader talk on NKE.
On to Lululemon. One of the traders I frequently interview is watching closely to see if Nike would be a buyer of LULU. Anything is possible as Lululemon officials consider their options. The stock is trading $40 with June Weeklys in action at the 41 strike and going into next week’s options expiration, someone is taking a long shot paying 2 cents for 52 call contracts.
Ford call options became active this week in the 17.50 strike. Call buyers in F persist at 17 and 17.5 strikes for the week and next. Ford delivers sales numbers next week. The puts are light so far..
Google shares are moving as the tech company launches a new line of wearable gadgets, the stock is trending higher at $577 and upside call buyers are emerging at the 580 and 585 strikes. That could even be a call spread by a player. There’s not much outstanding on the put side, just some light activity at 589.
Baidu is back in play. Traders are buying calls into Friday’s close. I noticed a report about put buyers in BIDU earlier this week. Today, call buyers are focused on the 185 call strike and 190 call strike for next week. The stock is close to a record high.
Twitter is trading $40.12 and is turning into a comeback kid, and the shorts are getting squeezed. That may account for the June 40 and 41 calls that traders are buying for this week and the July calls at 40.5 and 41 for next week. Those traders may be buying calls to cover for protection as the stock shoots higher.
Netflix is moving on negative remarks from Wall Street. Puts are the predominate movers with puts active at 435, 437 and 440 strikes.That has the signs of a put spread.
As the overall market is trading lower, there are put protection buyers all the way down to 1,940 strike puts where the S&P finds support and 1,955 strike puts are active, although those are now in the money.
Plenty of changes are happening to the list of available weeklys. Added to the list:
Spider S&P Mortgage Finance, CBS Outdoor America, Discover Financial Services, JD.com, Kansas City Southern, Norfolk Southern, PepsiCo, Vipshop Holdings, Workday and YY
And, deleted from the list: Kimberly Clark, Kohls, Mondelez and Tivo.