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Nike is the Dow's worst-performing stock this year, and one trader is betting that it will sink even lower.

The athletic apparel company has plunged almost 21 percent this year, hitting a 52-week low on Tuesday. Andrew Keene of AlphaShark said Tuesday on CNBC's "Trading Nation" that the low is only the start of more trouble for the stock.

Citing a daily chart of Nike stock, Keene said that after the company reported earnings on Sept. 27, its shares have made "lower lows and lower highs." More specifically, Keene said that every time Nike has risen to meet its 20-day moving average, the stock has promptly fallen, leading him to think that "at any rally, [Nike] will get sold."

On a weekly chart, Keene said Nike will break below its "support" level of $51.50, and that level will now be the new "resistance" point that could be difficult to break through.

However, Keene also wants to be careful in case Nike does rise a little by year-end. To mitigate for a small pop in Nike, Keene is looking to sell the December 50-strike calls and buy the December 52.5-strike calls for $1 per share.

The maximum he is risking for the trade is $150, and his maximum reward is $100, but Keene gave himself a "3 percent cushion" either way from when the stock was at $49.70 earlier on Tuesday.

Nike closed at $49.62 on Tuesday, down 1.12 percent. Bank of America Merrill Lynch downgraded the stock to underperform from neutral.