Nike Option Observation

I will take a break from all the new technical stuff today, but I'll be back tomorrow with other setups and applying it. Today I want to focus on my $NKE open contract and speculate what to expect in the next two days.

First, 3 posts ago I said I'd monitor Nike on Monday 12 - Tuesday 13 to make a decision on whether to exit the contract or to keep it open.

The Current State of Nike ($NKE)

• Open: $66.25 | Close: $66.30
• Day High: $67.08 (testing that upper resistance!)

My strike is $66 (Exp. Jan 23). We are officially In the Money, but with a break-even of $67.50, the job isn't done yet.

If I apply RSI for 1month, I can see that there is potential momentum as the stock remains in the 50s range, which means it is neither overbought nor oversold. See below:

In addition to it, if I look at the engulfing setup where the first bar is smaller and the second is fully engulfed from tonight's price, I can see a bullish moment about to break during the day. See below:

With the two analyses above, I can speculate an uptrend and I can expect the price of $NKE to continue to go up in the next two days.

The Exit Strategy I expect the uptrend to continue over the next 48 hours.

• Optimistic Target: If we hit $68 tomorrow, I’m taking my profits and closing.
• Conservative Target: If we only reach the $67.50 break-even, I’ll likely hold to see if the momentum carries.

Final Thoughts

Today I feel mentally exhausted so I wanted a break from learning and understanding a new setup. In trading, "doing nothing" or sticking to what you know is often the most productive move. So, instead I applied RSI and engulfing to make a speculation about $NKE. I'm excited to see how it plays out tomorrow and the day after, and I most definitely will be pumped if my speculations are right. Tomorrow I will continue with the setups as techniques we as traders can utilize.