A Put One-by-Two in Nike (NYSE: NKE)

Nike Inc. (NYSE: NKE) shares are currently trading down 83 cents to $61.26 without any news from the company, and at least one investor expressed moderate bullishness on a bet that the stock could at least hold its current levels.

Take a look at a put one-by-two spread in NKE, as an investor bought one March 62.5 call for a premium of 2.98 and sold two March 60 calls at a premium of $1.74 each for a net credit of 50 cents per spread. The March 60 calls have crossed more than 6,300 times versus open interest of 2,300 contracts. The March 62.5 calls have traded 3,000 times and are home to open interest of 1,000 contracts (investors traded these spreads to open).

Though this trade looks like a lot of put volume at face value, investors bought some of the puts and sold others. Investors will make a maximum profit of $3.00 on this spread if NKE shares expire at $60. The investor makes money all the way down to $57, at which point the spread loses dollar for dollar all the way down to $0.

NKE has not announced an earnings release date, but it is likely that the company will report sometime around March 17. In that case, this put-one-by-two will not have expired yet, so the investor will get the earnings event as a chance to attain maximum profits.

For more on NKE:

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Bullishness ahead of Nike earnings