The Smartest Way to Trade Nike's Earnings (Without Getting Burned)

Hey, big event tonight: Nike reports earnings after the close. Consensus is for revenue down ~5-6%, EPS $0.27-0.28, and gross margin compressed by 350-425 bps. The Street is already cautious on China, tariffs, and supply chain pressure.

For options traders like us, the more interesting angle is IV Rank at 52. That's really elevated relative to realized vol, which makes this setup attractive for premium sellers. Instead of a plain straddle/strangle, I'm looking at a structure that collects premium, removes upside risk entirely, and has a clear hedge if the short put gets tested after earnings.

I'll share a more detailed breakdown of the trade and hedge plan on my social media since it's too complex for one post. In the meantime, I'd love to hear your feedback and your trade ideas for NKE earnings tonight!

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