Nike Stock Slumps After Mbappe Signs With New Rival

Nike Inc (NYSE:NKE) stock is 0.4% lower to trade at $36.30 this morning, after soccer superstar Kylian Mbappe signed with footwear peer On Holding (ONON) as a global ambassador. Moving on from his long-term partnership with Nike, Mbappe is On's first soccer signing. ONON is now 2.4% higher today.

Nike stock traded as low as $36.15 out of the gate this morning, awfully close to its 14-year low of $35.72. The shares are now down 44% year to date and are heading for a fourth-straight weekly loss, pressured lower by their descending 80-day moving average.

Despite the stock's prolonged slide, sentiment among options traders is optimistic. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Nike's 50-day call/put volume ratio of 3.03 ranks higher than 78% of annual readings. Echoing this, NKE's Schaeffer's put/call open interest ratio (SOIR) of 0.51 sits lower than 7% of readings from the past year.