Trader Buys Over 3,000 NKE Upside Calls into This Week’s Earnings

I trade Unusual Options Activity (abnormal volume in calls or puts) because more often than not, these trades result in a stock making a major move.

Today we saw a trader buy more than 3,000 NKE December 72.50 Calls for $1.65 debit. This order cost over $500,000. NKE has an ADV (Average Daily Volume) of 7,700,000 shares. This trade has a huge risk and potentially a huge reward due to the fact that NKE reports Earnings after the closing bell on 12.20.2018. NKE has rallied 4 of the last 8 times after Earnings.

I bought these Calls for $1.65 and I have a profit target at $3.00 and $4.00.

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Andrew Keene

About the Author: Andrew Keene

Andrew Keene is President & CEO of AlphaShark Trading, which he originally founded as KeeneOnTheMarket.com in 2011. Andrew currently actively trades futures, equity options currency pairs, and commodities. He is a regular guest market commentator on such networks as Bloomberg TV, CNBC, and Fox Business. Keene's first love will always be trading, but he is arguably even more well known for building a trading room. Andrew is especially proud of having taught his personal strategies to over 50,000 students over the past 4 years. He is a self-made millionaire from trading and wants to continue to teach and help others.