Nike (NKE) is up sharply following its latest earnings announcement, pushing our recovery position close to breakeven. Using a LEAP call spread, we successfully flipped a loss of $26.71 into a small loss, showing how powerful this strategy can be.
Current Stock Price: $116.47
Cost Basis: $92.98
- Buy to close 3 NKE Jan Monthly (1/20) 115 Calls for around $5 each ($15 total)
- Sell to close 3 NKE Jan 2024 (1/19/24) 90 Calls for around $35.72 each ($107.16 total)
- Watch 3 NKE Dec Week Four (12/23) 95 Puts expire worthless
Loss: $0.82, or $82 per spread