Shorting NKE: part 20

Everyone needs insurance

Especially if you are short a stock that can have a $13.90 range in a 24-hour period.

Luckily, I sold my volatility at the open and watched it sell off from 52.50 to 36.44.

I bought 2 strangles and a straddle as NKE traded the 74.19 high so the close at 72.04 and then the after-hours trading below 72 means we still have bearish sentiment?

Maybe, but I am Delta neutral as of 3pm EST so I am happy to see my Gamma fly to over 100 again.

What does all this mean?

Friend and Hill sang a good enough song yesterday for shorts to cover, for Options traders to sell their profitable calls and the market to calm down a little.

That was yesterday, though. And tomorrow and tom orrow and tomorrow means everyone who trades NKE will think of the following over the nest 72 hours:

By the time we close the book on NKE for June 2025, July becomes a casino.

It has to close above 74.19 to be in a bull channel.

It must not break below 68.84. If it does, then the best it can hope for is closing above 71.69.

Then there is the bear. No, not the FX dramedy, the bearish tone achieved if NKE finishes June or July anywhere between 68.04 and 60.29.

It is going to be an interesting month.

Between trade talk and tariffs and pressure on the FED and the pending Skims collab save, for NKE, the casino is open. Why?

The speculators love as much variance and volatility as this.