Nike: Hedging For The Market And Upcoming Earnings


  • The market is “top-heavy” with concentration risk, the economy is uncertain, and a high risk-free rate is not reflected in the overall market. Investors can choose to mitigate risk in multiple ways.
  • Nike, Inc.’s underperformance justified by stagnant revenue and negative net income growth presents an opportunity.
  • Nike’s market share trends, its exposure to the economy, valuation, and its upcoming earnings support a bearish outlook, making put options an attractive risk mitigation strategy.

Cute Female Athlete Writhing In Pain After Injuring Thigh During Running Training On Track

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When reviewing the market performance of late, it is clear that it is “top-heavy” and many participants are puzzled about how long it can continue. For reasons economic, AI, liquidity, or otherwise, it is the reality we are living in. With the risk-free rate

Analyst’s Disclosure: I/we have a beneficial short position in the shares of NKE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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