Nike Soars 4.64% as Tim Cook Doubles Down on $3M Stake

Summary
• Apple CEO Tim Cook purchased 50,000 Nike shares at $58.97, doubling his stake.
• Nike’s intraday price surged to $60.58, a 4.64% gain from $57.34.
• Turnover hit 35.6 million shares, with the stock trading near its 52-week low of $52.28.

Nike’s stock roared back in a holiday-shortened session as Apple CEO Tim Cook’s $3 million insider purchase ignited investor optimism. The move, disclosed via a regulatory filing, saw the stock trade above $60 for the first time since late November, defying a broader slump in the apparel sector. With the stock near its 52-week low, the purchase signals confidence in CEO Elliot Hill’s turnaround strategy.

Tim Cook’s $3M Nike Stake Expansion Ignites Investor Optimism
Apple CEO Tim Cook’s purchase of 50,000 Nike shares at $58.97—a weighted average price close to the previous close—sent shockwaves through the market. As Nike’s lead independent director and a board member since 2005, Cook’s move is interpreted as a vote of confidence in the company’s long-term strategy. The purchase follows Nike’s recent earnings report, which revealed weaker margins and sluggish China sales, sparking a 13% decline in shares. By doubling his stake, Cook signals alignment with CEO Elliot Hill’s restructuring efforts, including cost-cutting and innovation in product design. The market’s immediate 4.64% response reflects a belief that Cook’s investment validates the company’s path to recovery.

Apparel Sector Gains Momentum as Under Armour Trails Nike’s Rally
The Apparel, Accessories, and Luxury Goods sector saw mixed performance, with Under Armour (UA) rising 1.61% but trailing Nike’s 4.64% surge. Nike’s rally was driven by insider buying, while Under Armour’s gains reflect broader consumer demand for sportswear amid winter sports season. The sector’s 30-day average turnover rate of 3.05% aligns with Nike’s 3.05% turnover, but Nike’s price-to-earnings ratio of 29.19 remains elevated compared to peers. The divergence highlights Nike’s unique catalyst—insider confidence—versus sector-wide trends.

Options Playbook: NKE20260102C58 and NKE20260102P58 Lead the Charge
• RSI: 27.43 (oversold)
• MACD: -1.19 (bearish), Signal Line: -0.25, Histogram: -0.93
• Bollinger Bands: Upper $70.66, Middle $64.38, Lower $58.10
• 200D MA: $66.9996 (above current price)

Nike’s price action near the lower Bollinger band and oversold RSI suggests a potential rebound. The 200-day moving average at $67.00 acts as a critical resistance level. For short-term traders, the NKE20260102C58 call option and NKE20260102P58 put option offer strategic entry points.

NKE20260102C58
• Code: NKE20260102C58
• Type: Call
• Strike Price: $58
• Expiration: 2026-01-02
• IV: 20.36% (moderate)
• LVR: 27.91% (high leverage)
• Delta: 0.865 (high sensitivity)
• Theta: -0.0847 (moderate decay)
• Gamma: 0.1146 (high sensitivity to price moves)
• Turnover: 290,604 (high liquidity)

This call option offers high leverage and liquidity, ideal for a bullish breakout. A 5% upside to $63 would yield a payoff of $5,000 per contract, assuming a $58 strike.

NKE20260102P58
• Code: NKE20260102P58
• Type: Put
• Strike Price: $58
• Expiration: 2026-01-02
• IV: 20.36% (moderate)
• LVR: 375% (extreme leverage)
• Delta: -0.150 (moderate sensitivity)
• Theta: -0.0102 (slow decay)
• Gamma: 0.1155 (high sensitivity)
• Turnover: 116,497 (high liquidity)

The put option’s high leverage and moderate delta make it a hedge against volatility. A 5% downside to $57 would yield a $1,000 payoff per contract.

Hook: Aggressive bulls may consider NKE20260102C58 into a break above $65.67 (30D support).

Backtest NIKE Stock Performance
Nike (NKE) has experienced a 5% intraday surge from 2022 to the present. However, backtesting the performance of NKE following this event reveals a mixed outlook. The 3-day win rate is 49.14%, the 10-day win rate is 45.92%, and the 30-day win rate is 41.42%. While the stock tends to move higher in the short term, the overall returns over 3, 10, and 30 days are negative, with returns of -0.15%, -0.77%, and -2.06%, respectively. This indicates that while NKE may bounce back quickly from an intraday surge, longer-term performance may be lackluster.

Bullish Breakout: Nike’s 4.64% Surge Signals Turnaround Momentum
Nike’s 4.64% rally, fueled by Tim Cook’s $3 million stake expansion, marks a pivotal moment in its turnaround narrative. The stock’s proximity to the 52-week low and oversold RSI suggests a potential rebound, but sustainability hinges on breaking above $65.67 (30D support) or falling below $58.09 (Bollinger band). Under Armour’s 1.61% gain underscores the sector’s fragility, but Nike’s insider-driven move stands apart. Investors should monitor the 200-day MA at $67.00 and options activity for conviction. A sustained close above $60.58 could reignite Wall Street’s $80 price target optimism. Action: Watch for a break above $65.67 or a drop below $58.09 to define the next phase.