By Jud Pyle, CFA, chief investment strategist for the Options News Network

After the close Wednesday, Nike

(NKE) - Get Report

announced a 28-cent profit drop to 70 cents per share last quarter or $3.81 per share for the full year, topping analysts' expectations by four cents. Since that event is out of the way, one investor is selling the July 50 straddle on a bet that the shares of the sports company could hover around $50 for the next three weeks.

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An investor sold the July 50 straddle 6,000 times right out of the gate today. The investor sold the July 50 calls and simultaneously sold puts in the same strike for $3.43 per straddle. The July 50 calls, which are home to current open interest of 7,151 contracts, have dropped 32 cents so far today, and the July 50 puts, home to current open interest of 20,360 contracts, have gained five cents on the day.

The investor will make money if Nike shares expire higher than $46.57 and lower than $53.43 next month. The investor is looking for volatility to decline for the shares to expire within range.

Nike shares have rallied more than 30% since reaching a 52-week low of $38.57 on March 9, but they are still 25% off from hitting a 52-week high it saw at the end of September last year (Nike shares rallied to $67.79). Nike stock is currently trading down 62 cents to $50.66 a share, and this straddle seller is hoping that the stock continues to hover around $50.

Meet Jud Pyle live in Las Vegas at the Forex & Options Expo.

Jud Pyle is the chief investment strategist for Options News Network (www.ONN.tv) and the portfolio manager of TheStreet.com Options Alerts. Click here for a free trial for Options Alerts. Mr. Pyle writes regularly about options investing for TheStreet.com.

Jud Pyle, CFA, is the chief investment strategist for Options News Network. Pyle started his career in finance in 1994 as a derivative analyst with SBC Warburg. After four years with Warburg, Pyle joined PEAK6 Investments, L.P., in 1998 as an equity options trader and as chief risk officer. A native of Minneapolis, Pyle received his bachelor's degree in economics and history from Colgate University in 1994. As a trader, Pyle traded on average over 5,000 contracts per day, and over 1.2 million contracts per year. He also built the stock group for all PEAK6 Investments, L.P. hedging, which currently trades on average over 5 million shares per day, and over 1 billion shares per year. Further, from 2004-06, he managed the trading and risk management for PEAK6 Investments L.P.'s lead market-maker operation on the former PCX exchange, which traded more than 10,000 contracts per day. Pyle is the "Mad About Options" resident expert. He is also a regular contributor to "Options Physics."