Nike's earnings announcement disappointed investors, but one trader who got bullish on Wednesday probably isn't too concerned.
In Wednesday's session, one trader sold 1,300 88-strike puts expiring on Jan. 30 for about $1.50. That's a bullish trade, but not aggressively bullish, as the trade will only lose money if Nike shares close below $86.50 on Jan. 30. That's considerably below Wednesday's closing price of $94.50.
The trade was made ahead of Nike's Thursday earnings announcement. Even though the company ended up beating earnings and revenue expectations in that report, Nike reported disappointing future orders numbers, which sent the stock a bit lower in late trading.
However, because the 88-strike where the put was sold is still well below the $93 level the stock bounced off of in the after-hours, there appears to be little risk that the trader will not end up getting to keep the $1.50 per share collected.