Nike (NKE) is scheduled to announce earnings tomorrow. I am recommending purchasing puts to hedge our position against a post-earnings sell-off.
Note that these protective puts are meant as hedges. The goal is for them to expire worthless. However, the put could explode in value if the stock falls sharply after earnings, thus offsetting some of the downside in shares.
Note: No action is needed on the NKE Jan 2024 (1/19/24) 90/Monthly (1/20) 115 Call Spread at this time.
Current Stock Price: $103.68
Cost Basis: $89.65
Action: Buy to open 3 NKE Dec Week Four (12/23) 95 Puts for around $1.11 each ($3.33 total), but adjust as needed to buy puts today
New Cost Basis: $92.98