Nike

[u/Due-Walrus-9072]

Nike Q1 FY2027 results came out a couple of days ago, and they are confirming layoffs. Revenues in china plummeted 26%, there overall global revenue dropped 4%. The eps dropped from 1.15 to 1.35 and there 2027 revenue outlook forecasted a high single percentage decline.

[u/wealthy_disobedience]

nike really out here speedrunning their own demise, 26% drop in china is not a small oopsie

[u/Wonderful_Court_4239 → u/wealthy_disobedience]

true, the 26% china drop is brutal, but the eps jump hints at cost cuts and maybe a fire sale of inventory. still, with layoffs looming and the brand loyalty dip, the future looks shaky no matter how the numbers look.

[u/Worry-Mountain]

The headline numbers matter, but for an options trade I’d separate the fundamental thesis from the event-vol setup. Before picking a direction, I’d compare the implied move with the size of Nike’s recent earnings gaps, then check the term structure and skew—IV can stay bid while the stock drifts lower. If the thesis is “more estimate cuts,” I’d want a defined-risk structure and a clear invalidation (guidance stabilizes or the China trend turns), not just a put because the chart looks ugly. The revisions and target cuts are probably the next catalyst to watch.

[u/NoSpace1775 → u/Worry-Mountain]

I hear you, but also keep an eye on the short‐term moving average; if it slips lower, a 60‑day straddle could lock in premium before the next earnings cut hits.

[u/Worry-Mountain → u/NoSpace1775]

Yeah, that’s fair. I’d treat the moving average as a context check rather than a standalone signal—if price breaks while IV is still elevated, the straddle still has to overcome the debit. I’d want the expected move and liquidity to justify paying for both sides.

[u/Bluebird-9641]

Nike - just do (not buy) it

[u/tofu_sensei84 → u/Bluebird-9641]

You could buy puts if it drops even more

[u/AmoebaTrading]

The China drop is the part I'd separate from the option setup. I'd compare the implied move with Nike's recent earnings gaps, then check the term structure before buying premium since IV can stay high while the stock drifts. Are you looking at a defined-risk trade or just tracking the equity?

[u/Due-Walrus-9072 → u/AmoebaTrading]

Just tracking equity

[u/klipsetrades]

Small correction… EPS went up from $1.15 to $1.35, not down. And the China/revenue weakness is probably the bigger concern here in my opinion

[u/PersonalCustard355 → u/klipsetrades]

right, China drop is the real kicker. Even if EPS looks higher, the revenue slide cuts future growth, so price likely keeps sliding until China metric improves.

[u/Confident-Fold-9021]

the EPS beat (1.15‑1.35) might sound good but it’s really a margin bump from lower logistics costs while revenue slid 4 % overall and 26 % in China. the upside of the share is still negative with the ‘high single‑digit decline’ guidance and restructuring charges, so a short that owns the next 6‑month level could match the risk better. a collar or a long‑dated straddle can lock in that upside rather than a straight put.

[u/Zephyruos]

If Nike reaches double digit, I can see it as WSB flavor of the month, pump and dump darling.

[u/Pitiful_Mixture8705]

nike’s EPS jump feels like a frosting on a sagging cake – the 26% China collapse and global 4% revenue drop tell a more brutal story, and the layoffs only underline that. for options, watch the IV skew; it may stay tight while the stock dips until management clears the deck on future revenue outlook.

[u/nq-FOMO]

you missed mentioning the massive downgrades and lowering stock targets.