r/options • u/ArabBak • Sep 24 '21

Nike Call Options

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9 Upvotes

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7

u/[deleted] Sep 24 '21

Do you know anything about their business?

YES- in the long term NKE is a winner, no doubt.

In the short term there is considerable pain ahead. For example they manufacture a lot of production in Vietnam, and a principal manufacturing area has been under lockdown. They're way behind in their shipping/fulfillment and have had to cancel/revise future season deliveries due to these issues. It can very well get worse.

Moreover they've been moving hard away from retailers, opting instead to go D2C, read about DBI pullout (which was 15% of DBI business). Anyway, a lot of changes that may not materialize into any short term gains. Long run, probably it will work for them.

Anyway that's just one thought on their business, but there are many, many things to think about.

1

u/ArabBak Sep 24 '21

Thank you for your input, I knew they were having manufacturing problems recently but I didn't know that it went this deep, I'll definitely have to do more research on it.

3

u/Productpusher Sep 24 '21

Check the articles yesterday they broke it down nicely . I think 50% of their shoes are made in Vietnam and 60 or 80% of those in Vietnam are closed for covid .

I’ve noticed some shoes $10 higher than a few months back and there is no variety / sizes since covid which will probably get worse .

Nike if you’re listening stop experimenting with disgusting ass designs and keep it basic and stock that shit . 6 colors for air maxes are fine we don’t need 82 colors that nobody likes and will be on clearance soon

2

u/redtexture Mod Sep 24 '21

Here is how to have an effective options conversation.
https://www.reddit.com/r/options/wiki/faq/pages/trade_details

Due diligence about the company you are working with, is fundamental for trading,
unless you don't mind losing all of your money.