Insights 
VT 
Nike’s stock recently saw a downturn, closing almost 2% lower from the previous session, and is down over 12% since its recent earnings report. Currently, Nike is trading more than 62% below its peak from 2021, indicating challenges despite its strong earnings. Founded in 1964 and headquartered in Beaverton, Oregon, the company is a global leader in athletic footwear and apparel, known for its “Swoosh” logo and “Just Do It” slogan. However, it faces ongoing market pressures and changing consumer trends.
From a technical analysis standpoint, Nike’s stock has broken through a key upsloping trendline, suggesting a potential shift in market sentiment. Key support levels are identified at $65.20, $62.50, and $52.25, indicating potential zones where the stock might stabilise or rebound. These levels are marked on the chart with horizontal blue lines, providing visual guidance for potential trading actions.
Risk management is a top priority before entering any trade. Managing downside exposure is essential for maintaining consistency over time.
Given the recent breakdown in Nike’s stock, we see an opportunity for bearish derivative plays in the coming weeks. The stock’s failure to hold key trendlines suggests momentum has shifted downwards. For traders looking to position for a continued slide, buying put options could be a straightforward strategy.
This technical weakness is amplified by a shaky economic backdrop. The latest Consumer Confidence report for October 2025 dipped to 99.5, indicating consumer spending might tighten as we head into the holiday season. Furthermore, competitors like On Holding just posted a 25% year-over-year revenue jump, highlighting intense pressure on Nike’s market share.
With this in mind, we can use the identified support levels as targets for strike prices. Buying put options with a November or December 2025 expiration and a strike price around $65 could be an initial move. If the stock continues to fall towards the $62.50 level, those positions would increase in value.
For those looking to define their risk, a bear put spread is another viable option. This involves buying a higher-strike put, such as the $65, and selling a lower-strike put, perhaps the $60. This strategy lowers the upfront cost of the trade but also caps the potential profit, which aligns with a disciplined approach to risk management.
We remember the challenges Nike faced back in 2023 and 2024 with inventory gluts and shifting consumer tastes, and the current environment feels familiar. That period showed us how quickly sentiment can turn on major retail brands, even one as iconic as Nike. These past struggles provide a useful historical map for the potential downside we might see now.
Regardless of the chosen strategy, the most important thing is to have a clear plan for managing the position. Setting a maximum loss on any trade is crucial, as market conditions can change quickly. This disciplined approach ensures we can stay in the game for the long run.
