Nike (NKE) has sold off despite reporting better-than-expected earnings and announcing a stock buyback program. Management offered a muted forecast due to increased product costs, ongoing supply chain issues and inflation.
But with shares stabilizing, I am recommending we close our protective put. The money we pocket will reduce our cost basis on the position.
Note: No action is needed on the NKE Jul Week Two (7/8) 115 Call at this time.
Current Stock Price: $105.35
Cost Basis: $130.35
Action: Sell to close the NKE Jul Week One (7/1) 105 Put for around $1.60, but adjust as needed to close today
New Cost Basis: $128.75