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Trader bets on more pain for a beaten Dow stock

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They say you should buy what you know, but that adage hasn't worked out this year.

The three worst performing stocks in the Dow are perhaps some of the most common household names — Disney, Coca-Cola and Nike. And one technician is betting that Nike will continue to disappoint following its earnings report this week.

Nike shares are down nearly 18 percent in 2016 and the company is set to report earnings on Tuesday after the bell. According to Carter Worth of Cornerstone Macro, Nike is "one of the greatest operating names of all time," but "you have the problem of massive outperformance long term and more recent underperformance."

Prior to 2016, the stock was substantially outperforming the S&P, but the recent underperformance indicates that the stock could sink even more, Worth told CNBC's "Options Action" on Friday.

Worth noted that this issue of underperformance may not just be Nike specific. Names like Under Armour and Skechers are also down 28 percent and 16 percent, respectively.

"[The] stock market is ripping postelection [and] no one's buying Nike." Worth is expecting that the stock could even fall as low at $46 per share.

Nike was trading at the $50.80 range during Monday's session.

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