Sunday, October 25, 2009

NKE - Insider unloading heavily - Should you?

Since Oct 14, one of the NIKE directors has sold most of his holdings in a rapid manner... Is this relentless selling going to be a harbinger of something ominous to come at NIKE? Or does the Director just needs to raise some cash ( some 100 millions or more) to feed his starved and shivering chuwawa?

Will wait and see... meantime, I am long 65-60 Put Spread!

Note of caution: Insiders rarely get it right... Case in point, STEC 10% owner sold all of his shares in Aug. at 24-29 and then the shares hit $40! Ouch! Also, I mentioned Jeff Bezos selling his shares, tiny amount that is, in May in the 80s and now AMZN is trading at $119. Nevertheless, I am short NKE because I think short term the move upward is overdone!

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