Don't Bet on a Nike Stock Rebound Just Yet

Athletic apparel retailer Nike Inc (NYSE:NKE) has struggled to regain footing since a 15.5% post-earnings bear gap on April 1. If past trends hold, NKE could be vulnerable to another test of those levels. Despite coming off a 6.6% weekly win, Nike stock is flashing a bearish sentiment signal.

Nike stock's 10-day call/put volume ratio of 4.77 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) stands higher than 90% of readings from the past year.

This marks the 11th time in the last three years that the equity's 10-day buy-to-open put/call ratio crossed over 1.0 and hit the 90th percentile. Per Schaeffer's Senior Quantitative Analyst Rocky White, NKE was lower one month later 64% of the time after these signals with an average 5.8% loss. 

A drop of that magnitude from its current perch at $44.33 would send NKE back down to $41.76, just above its its May 18 10-year low of $41.35. Year to date, the shares are off 30.4%.