Sagar
Why might you book the small profit in $NKE bearish position today?

Here is another example of the standard technique I use. I am using Memory resistance (and other bearish signals in this case) to take a bearish trade using short call vertical position.

In the last weekend market roundup, I had analyzed NKE as a potential 360 short opportunity. The video is available on my YouTube channel https://www.youtube.com/c/TradingProfitably

Here is a recap of what I saw at that time (as of Friday close 20th Sep 2019).

1) The industry was weakening. That is true today also (today's industry scorecard attached here - as of ~11:20 AM EST).

2) The stock was overvalued with negative and decreasing quarterly earnings growth (that is true today, too).

3) The stock gave a bearish Flow candle in the daily chart while the price was coming down with lower-high and at the upper end of a wide sideways-range. 

How did I trade NKE?

A) I was asleep in Thailand (opposite to the USA timezone) when Friday's market closed. I could not analyze and take any short at that time.

B) On Monday I saw NKE was going up. I waited, and as price hit the daily Memory resistance, I took a bearish position using Short Call Vertical. I put the short leg just outside the Memory resistance (at 88).
 
C) I noticed that the earning is today (24th Sep AMC). The short call vertical position has time decay in my favor. And even volatility is in my favor as volatility is expected to drop after earning and I have a net short position in call options. Still, my standard guideline is to avoid holding a short-term/swing trade position across earnings as that is probably nothing more than gambling. My position has a small profit. If the profit expands, that is good. In either case, I may close the position before the close today and avoid holding it across earning.

nke 1 2019-09-24_11-31-46.jpg  nke 2 2019-09-24_11-30-27.jpg  nke 3 2019-09-24_11-29-35.jpg 
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