Nike Options Traders Eye $42.5 Calls as Stock Hovers Near 52-Week Lows

By TrendSpider Editor

Nike, Inc. (NKE) is drawing attention in the options market Friday, with two unusual contracts totaling $1,004,500 in combined premium flagged as the stock trades at $40.78, down 0.37% on the session. The activity spans both a near-term bullish call and a longer-dated bearish put, suggesting divided

Nike Options Traders Eye $42.5 Calls as Stock Hovers Near 52-Week Lows

Nike, Inc. (NKE) is drawing attention in the options market Friday, with two unusual contracts totaling $1,004,500 in combined premium flagged as the stock trades at $40.78, down 0.37% on the session. The activity spans both a near-term bullish call and a longer-dated bearish put, suggesting divided conviction among options traders at a critical technical level. With NKE sitting just above its 52-week low of $40.44 and well below its 52-week high of $80.165, the stock remains under significant pressure heading into the summer.

Key Drivers of the NKE Stock Move

• Main Catalyst: Two unusual options contracts were flagged on NKE today, generating $1,004,500 in total premium. The first is a CALL at the $42.50 strike expiring July 17, 2026, with 2,500 contracts traded against 47% open interest. The second is a PUT at the $37.50 strike expiring January 21, 2028, with 1,000 contracts traded against 40% open interest.
• Bull Case: The $42.50 call block, carrying $392,500 in premium, is an out-of-the-money near-term bet that NKE can reclaim the $42.50 level within the next three weeks. With the stock trading at $40.78, a move to that strike would represent a modest but meaningful recovery from levels just above the 52-week low of $40.44.
• Bear Case: The larger of the two trades is the $37.50 put expiring in January 2028, commanding $612,000 in premium. This out-of-the-money, long-dated position reflects a meaningful bet that NKE could trade below $37.50 at some point over the next 18-plus months, implying further downside from an already beaten-down price.

The options positioning tells two different stories depending on the time horizon. Near-term traders appear to be speculating on a bounce from deeply oversold levels, while the larger, longer-dated put trade suggests at least one player is hedging or outright betting on continued deterioration in Nike's fundamentals or broader consumer spending environment. Nike has faced persistent headwinds including softening demand in North America and China, elevated inventory levels, and leadership transitions. The stock is down sharply from its 52-week high of $80.165, having lost roughly half its value over the past year, which underscores how deeply sentiment has shifted on this once-dominant consumer brand.

NKE Unusual Options Activity

• Contract 1: CALL | Strike: $42.50 | Expiry: July 17, 2026 | Volume: 2,500 | Open Interest: 47% | Out of the Money | Premium: $392,500
• Contract 2: PUT | Strike: $37.50 | Expiry: January 21, 2028 | Volume: 1,000 | Open Interest: 40% | Out of the Money | Premium: $612,000

NKE Seasonality

Late June historically marks the end of Nike's fiscal year, a period that can bring heightened volatility around earnings reports and annual guidance updates. Options activity in this window often reflects positioning ahead of those disclosures, making the current flow particularly worth watching as traders stake out directional bets heading into the fiscal year-end reporting cycle.

NKE Relative Performance

At $40.78, NKE is trading just 0.84% above its 52-week low of $40.44, reflecting severe underperformance relative to where the stock stood at its 52-week high of $80.165. The stock's inability to mount any sustained recovery despite being cut in half over the past year highlights how far NKE has fallen out of favor compared to broader consumer discretionary peers and the general equity market. Friday's 0.37% decline does little to change that picture, keeping the stock pinned near levels not seen in years.