To receive further updates on this NIKE, Inc. (NYSE:NKE) trade as well as an alert when it’s time to take profits, sign up for a risk-free trial of Power Options Weekly today.
The S&P 500 Volatility Index (VIX) is now back below the 13.50 level, and that tells me that the market is not in any danger of a major decline. It attempted to get above its 200-day moving average over the past two weeks, but it was not able to hold there, which is a bullish sign.
Additionally, the U.S. dollar index is now bumping up against resistance at the 94 level, which I identified last week as a potential pivot point. The dollar’s advance will likely stall at this point or even move lower, which may hurt the small-caps while benefitting the larger multi-national corporations.
On the bearish side, we are getting into the summer months, which are usually dull with light action and a slightly downward bias. The ratio of advancing issues to declining issues is also not as strong as I would like to see, as most of the outperformance is coming from the small-caps and the financials.
However, one stock that has really performed well this year and should continue to move higher is NIKE, Inc. (NYSE:NKE).
Buy to open the NIKE, Inc. (NKE) Jul 75 Calls (NKE180720C00075000) at $1.35 or lower.
Follow our Facebook page to receive each Trade of the Day direct to your News Feed — and join the conversation.
InvestorPlace advisor Ken Trester brings you Power Options Weekly, which delivers 5 new options trades and his latest trading advice to you each Friday. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990.