Short

NIKE Put Option Play - Ex-Dividend Expiration 5/28

Updated

NIKE (NKE) Put Option Play - FRI 5/28

I hope you guys were able to capitalize on todays NKE Put option play. I had to wait it out but it did pay out a nicely.

OK, as many of you know, today 5/27 was the last day to buy NKE shares in order to qualify for Nike's dividend payment.
Those who were only holding for the dividend are able to sell tomorrow 5/28 and still receive their payment.
If you look thru NKE chart history you can clearly see a sell off directly after each qualifying date.

SNAP has ran up nicely ALL WEEK after being shorted/manipulated last week so that many CALL options would not cover.
I think with the potential inflation data looming over the market and it also being the end of the week, we are going to be seeing folks take some profits.

Tomorrow 5/28 the Personal Consumption Expenditures Price Index will be released.
This index is what is used by the FED as their preferred inflation measure.
If this shows that inflation is going higher than expected, it could cause the FED to act sooner and the market WILL react.

Taking into consideration these factors, I think it is likely we have a bearish day tomorrow.
Pay very close attention to futures and the 10-Yr bond yield tonight and before market open as this should give us a feel as to what type of day it will be.

Possible Option Play
Strike Price: $136-138 Put
Expiration Date: 5/28 or 6/4
Stop Loss: 40%
Notes: Watch price action & volume in pre-market. Make sure there is liquidity/open interest in the option.
This will be a quick in & out play as I'm anticipated a sharp gap/spike to the downside.

Open to all questions, critique and conversation. I'm a beginner and would love to know what you know and pick your brain.

Thanks for reading & happy trading tomorrow!

Disclaimer: This is not financial advice. These are just my ideas and notes on what I may do.

Note

Please disregard the line regarding SNAP.

"SNAP has ran up nicely ALL WEEK after being shorted/manipulated last week so that many CALL options would not cover."

I was tired and thinking about both NKE & SNAP puts and must've fused my thought patterns lol. Will also be looking into SNAP Puts tho.

CLEEN50

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