Call Spread on NKE on 8/23/2012

Nike, the Greek goddess of victory, helped others succeed in times of war. NIKE, the world's #1 maker of athletic footwear and apparel, does more dominating than assisting, to capture a hefty share of the US athletic shoe market. It designs and sells footwear and uniforms for a wide variety of sports. NIKE also sells upscale Cole Haan shoes, as well as athletic apparel and equipment. It operates NIKETOWN shoe and sportswear stores, NIKE factory outlets, NIKE Women shops, and sells its products online. Overall, the company sells its items in some 690 NIKE-owned retail stores worldwide and through about 23,000 retail accounts in the US and via independent distributors and licensees in other countries.

Stockwinners is bullish on Nike for the following reasons:

1. Shares have formed a bullish triangle and are supposed to break our of this formation
2. Back to school event is going to boost sales during fall season
   

TRADE: Buy 1 SEPT $97.50/$100 call spread for less than $0.55

• Buy 1 SEPT  $97.50 Call for $0.85
  
• Sell 1 SEPT  $100 Call for $0.30
  

Breakeven & profit/loss analysis

• Breakeven at $98.05 by Sept expiration
  
• Profit up to $1.95 between $98.05 to $100, max profit $1.95 above $100
  
• Loss up to $0.55 between $98.05 to $97.50 , max loss $0.55 below $97.50
  

The payoff table is presented below:

Trade Buy 1 September $97.50 Call at $0.85 Sell 1 September $100.00 Call at $0.30 For a net debit of $0.55 Profit/Loss Analysis Breakeven at $98.05 Maximum profit is $195.00 at strike of $100.00 Maximum loss is ($55.00) at strike of $97.00 Closing Summary Sold 1 September $97.50 Call at $2.00 Bought 1 September $100.00 Call at $0.24

Position closed on 9/6/2012 at price of $1.76 with a 220.00% gain in 14 days.

Updates

9/6/2012 1:15:46 PM

Stockwinners is happy with the gains of this trade at this time and is closing this position. Please adjust your stop-loss if you plan to stay long.

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