Nike Faces More Downside as Options Market Predicts Earnings Decline

Nike's (NKE) earnings report on October 1 is expected to bring more disappointment to investors, according to the options market. Despite CEO Elliott Hill's turnaround efforts, the consensus is for a year-over-year decline in both earnings per share (EPS) and revenue.

The company is projected to post $0.44 a share of EPS on $11.34 billion in revenue, which would represent a significant drop from last year. This comes as no surprise given that Nike stock has been down 80% since the start of this year.

The put-to-call ratio on options contracts expiring October 9 is at 1.16, indicating a bearish skew. The lower price on those contracts is set at $32.91, signaling a potential loss of 7.74% for the company through the end of next week.