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Home › Forums › Swing Trades › Anticipating the Breakout in NKE
After a good earnings reaction, the stock has done nothing for over a month. This is the tightest the bollinger bands have been all year (and I think the tightest in 3 years too).
I’m expecting this stock to resolve higher as the trend is up, and I’m expecting volatility expansion sooner than later.
Using today’s dip as a low risk entry makes sense here. Instead of waiting for the breakout, this is taking advantage of a stop run.
Buy to open NKE Jun 100 calls @2.52 or lower.
Hard stop at 97.48.
Scale half at 103.70 (the earnings day high)
103.70 was hit, so time to scale half.
Sell to close HALF SIZE NKE Jun 100 Calls @4.50
Going to close on the rest here as NKE is hitting it’s upper Bollinger Band, and there’s only 1 day left in these options.
Sell to close rest NKE Jun 100 Calls @6.50
Average exit: 5.50
Average Return on Max Risk: 118%