Nike (NKE) Ready to Breakout?

Thursday, April 08, 2010

Is Nike (NKE) ready to breakout? After a strong earnings report on March 17th, shares of NKE have been in a high-level consolidation for a full three weeks. NKE is basing at all-time highs absorbing the profit-taking and holding a base level around $73. I have been tracking the stock for a couple weeks now and it seemed that the price action was noticeably different today. After hours Market Intellisearch reported that 629 puts traded today versus 4,497 calls. It looks like the options market is betting on higher prices. Is it just excitement from Tiger Woods and The Masters or are shares ready to breakout? Traders should put this stock on their radar tomorrow with the $75 level likely to trigger a breakout to new all-time highs.

Disclosure: Long NKE.
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