Nike’s stock has recently dropped, closing nearly 2% lower than the last session and declining over 12% since its latest earnings report. The current trading price is more than 62% below its peak in 2021, indicating ongoing challenges despite the company’s strong earnings. Founded in 1964 and based in Beaverton, Oregon, Nike is a worldwide leader in athletic shoes and clothing, recognized for its “Swoosh” logo and “Just Do It” slogan. However, it is facing tough market pressures and shifts in consumer behavior. From a technical standpoint, Nike’s stock has broken a key upward trendline, which may indicate a change in market sentiment. Important support levels are at $65.20, $62.50, and $52.25, representing potential points where the stock could stabilize or bounce back. These levels are marked on the chart with horizontal blue lines to help guide trading decisions. Managing risk is very important before making any trades. It’s vital to control potential losses to maintain success over time. With the recent decline in Nike’s stock, there’s an opportunity for bearish trading strategies in the coming weeks. The stock’s inability to maintain essential trendlines suggests that momentum has shifted downward. Traders who want to bet on further declines could consider buying put options as a straightforward strategy. This technical weakness is made worse by a shaky economic situation. The latest Consumer Confidence report for October 2025 dropped to 99.5, which indicates that consumer spending might slow down as we approach the holiday season. In addition, competitors like On Holding have reported a 25% year-over-year revenue increase, putting extra pressure on Nike’s market share. With this in mind, we can target the identified support levels for choosing strike prices. Purchasing put options with a November or December 2025 expiration and a strike price near $65 could be a good first step. If the stock continues to drop towards the $62.50 level, those options would rise in value. For those who want to limit their risk, a bear put spread is another suitable choice. This involves buying a higher-strike put, like the $65, and selling a lower-strike put, for example, the $60. This strategy lowers the initial cost of the trade while also capping potential profits, which aligns well with a careful risk management approach. We should recall the challenges Nike faced in 2023 and 2024, like excess inventory and changing consumer preferences, as the current situation feels similar. That period taught us how quickly consumer sentiment can shift against major retailers, even one as well-known as Nike. These past difficulties provide a useful guide for the potential decline we might encounter now. No matter which strategy you choose, having a clear plan to manage your position is crucial. Setting a maximum loss for any trade is important, as market conditions can change rapidly. This disciplined approach will help ensure we remain in the game for the long haul.

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