What long-term investors can do with Nike options ahead of earnings

What long-term investors can do with Nike options ahead of earnings

Options 10 minutes to read
MicrosoftTeams-image (3)
Koen Hoorelbeke

Investment and Options Strategist

What long-term investors can do with Nike options ahead of earnings

Nike (NKE:xnys) is set to report its quarterly results on 30 September after the U.S. market closes. If you already own Nike shares, you might be wondering if there’s a way to earn a bit extra while you wait. The answer is yes. By using a simple strategy called a "covered call," you can collect extra income—without selling your shares right away.

Why Nike now

Nike’s share price is currently around $74.70. Over the past few months, it hasn’t moved much—it’s been trading in a tight range. But earnings season can often trigger bigger moves. That’s why investors are paying more for options right now. This higher demand causes option prices to rise, giving long-term investors like you a chance to benefit by selling one.

2025-09-04-00-NKE-charts
Nike price chart, weekly and daily views with 50- and 200-day/-week moving averages around $75, September 2025 © Saxo

A simple strategy: the covered call

A covered call is a conservative options strategy. It works like this:

  • You already own at least 100 shares of Nike.
  • You sell one call option, agreeing to sell your shares at a higher price by a certain date.
  • In return, you receive cash today, known as the option premium.

If Nike doesn’t go above that higher price, you keep your shares—and the cash. If it does rise, your shares may be sold at that higher price, and you still keep the premium.

One possible setup

Let’s walk through an example using real numbers from today:

  • You own 100 shares of Nike at $74.73.
  • You sell a call option with a strike price of $83, expiring on 3 October 2025.
  • You receive about $1.19 per share, or $119 in total.

This means you agree to sell your Nike shares for $83 if the stock rises above that level before 3 October. If it stays below $83, nothing happens—you keep the shares and the $119.

2025-09-04-01-NKE-optionchain
NKE options chain, Oct 2025 calls with the $83 strike highlighted, bid ~$1.13, ask ~$1.27, delta ~0.23, ITM probability ~19% © Saxo

Let’s say Nike climbs to $83 or higher. Your shares may be sold, and you make a total gain of almost $946—this includes the rise in share price and the $119 option premium.

If the stock drops below $74.73, the premium helps reduce your loss. Your breakeven price in this example is around $73.54.

Why choose the $83 strike?

The $83 strike price gives you more than 11% potential upside from the current share price. This means you’re not giving up gains too early. At the same time, the option still pays you a solid premium thanks to the upcoming earnings announcement.

This balance—keeping some upside and earning income—is why many investors choose slightly higher strike prices.

2025-09-04-02-NKE-strategy
Covered call payoff for NKE: long 100 shares at $74.73 and short Oct 3 $83 call, showing max profit near $946 and breakeven ~$73.54 © Optionstrat.com

What are the risks?

While this is considered a safe strategy, there are still a few things to keep in mind:

  • If Nike’s stock rises sharply after earnings, your profit is limited to $83 per share.
  • If the stock drops significantly, the option premium won’t cover all your losses.
  • There is a small chance your shares could be sold early, but that’s unlikely since the dividend date has already passed.

What to do as the stock moves

If Nike moves close to $83 before earnings, you might consider adjusting the trade—perhaps by choosing a later expiry or a higher strike price.

If the stock stays flat, the option will lose value over time. You can keep the full premium and decide later whether to repeat the strategy after earnings.

After the earnings report, the option premium usually drops. This is called a “volatility crush.” At that point, you can sell a new option or just hold your shares.

Who should consider this?

This strategy may be a good fit if you:

  • Own at least 100 Nike shares
  • Don’t plan to sell soon
  • Would be happy to sell at a higher price
  • Want to earn extra income in the meantime

You don’t need to be a trader. You don’t need to time the market. This is a simple, practical way to get more out of a stock you already own.

Related articles/content             
What long-term investors can do with Nike options ahead of earnings | 4 Sep 2025
Earnings around the corner - how to use a cash-secured put to set your Alibaba buy price | 13 Aug 2025
Disney - earn while you wait for your ideal entry price | 11 Aug 2025
An income idea for Palantir shareholders | 1 Aug 2025
Collect monthly income from UBS - a beginners guide to covered calls | 31 Jul 2025
How Amazon shareholders can collect extra income before earnings | 29 Jul 2025
After the drop - two smarter ways to invest in ASML today | 18 Jul 2025
The overlooked strategy turning cash into consistent income | 11 Jul 2025
Getting paid to buy Novo Nordisk - earn income while waiting for a better price | 8 Jul 2025
Get paid to wait - how to earn income while preparing to buy Palantir shares | 30 Jun 2025
There s another way to buy SAP - one that pays you | 27 Jun 2025
How to get paid for your patience - Using cash-secured puts to invest in Intel 23 Jun 2025
How to turn your Intel shares into an income machine - even in a tough market | 20 Jun 2025
Already own Logitech - or want to - There is a smarter way to invest either way
How long-term investors can earn income or buy Alibaba at a discount with options
Earning extra income and buying at a discount - Covered calls and cash-secured puts on Palantir
How to earn extra Income from your Nestle shares - without taking on unnecessary risk
How to use cash-secured puts to buy UBS stock - or earn income while you wait
Learn how to generate income from ASML shares using MINI-options
Learn how you can earn income or buy Bitcoin at a discount
How a covered call on AMD generates extra income for long-term investors
Learn how you can earn income or buy Bitcoin-exposure at a discount

Guide on long-term options for strategic portfolio management
Assignment explained - 01 - what every options trader and investor should know
Assignment explained - 02 - how to avoid assignment
Assignment explained - 03 - how to use option assignment to your advantage
Assignment explained - 04 - option assignment cheat sheet
More from the author             
This material is marketing content and should not be regarded as investment advice. Trading financial instruments carries risks and historic performance is not a guarantee of future results.
The instrument(s) referenced in this content may be issued by a partner, from whom Saxo receives promotional fees, payment or retrocessions. While Saxo may receive compensation from these partnerships, all content is created with the aim of providing clients with valuable information and options..

Quarterly Outlook

01 /

  • Q3 Investor Outlook: Beyond American shores – why diversification is your strongest ally

    Quarterly Outlook

    Q3 Investor Outlook: Beyond American shores – why diversification is your strongest ally

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Q3 Macro Outlook: Less chaos, and hopefully a bit more clarity

    Quarterly Outlook

    Q3 Macro Outlook: Less chaos, and hopefully a bit more clarity

    John J. Hardy

    Global Head of Macro Strategy

    After the chaos of Q2, the quarter ahead should get a bit more clarity on how Trump 2.0 is impacting...
  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

Disclaimer

The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please refer to our full disclaimer and notification on non-independent investment research for more details.

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region

Singapore
Singapore

Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit www.home.saxo/en-sg/about-us/awards.

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.