While the earnings season is winding down, there are several companies announcing this week, and we are trading three of them. I would like to share one of these with you, the one involving Nike.
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How to Play the Nike (NKE) Earnings Announcement
Calendar spreads in NKE seemed so attractive that we placed 20 Apr-Mar4 spreads last week at three different strikes for an average cost of only $.33 – if the stock ends up anywhere between $52.50 and $57 (currently about $54.50), the long side of one of those spreads with four weeks of remaining life should be worth at least $1.00, more than covering the cost of all three.
I checked prices this morning and the three spreads could be purchased for only a little more – an average of $.35.
NKE announces earnings on Thursday, March 21st after the close. Expectations seem to be . . .