Short sellers are sitting on an estimated $1.4 billion in paper gains this year, but a better-than-expected report could force some to cover, according to S3 Partners.

  • Short interest has grown by about 55 million shares in a year, to more than 7% of available stock.
  • Options trading implies an 8% one-day move after Thursday's report.
  • Jefferies expects revenue of $11.5 billion and EPS of $0.48, above Wall Street estimates.

Nike Inc. (NKE) stock ticked higher in early premarket trading on Wednesday as investors looked toward the fiscal first-quarter (Q1) earnings report later this week. 

Short interest has climbed to a record 87 million shares, leaving bears with sizable paper gains. Still, stronger-than-expected earnings could pressure short sellers to cover, potentially adding fuel to the beaten stock. 

Nike stock inched 0.5% higher at about 4:05 a.m. EDT. The stock is down over 7% in September, tracking its worst month since June. 

Nike Short Interest Hits Record High 

According to an S3 Partners report, more than 87 million NKE shares are now held in short positions, marking the highest level on record. Short exposure has grown by roughly 55 million shares over the past year, lifting the portion of the available stock sold short from under 3% to above 7%.

Nike’s stock has plunged  50% from its October 2025 peak. Short sellers have continued betting against the stock instead of closing their positions, gaining an estimated $1.4 billion on paper in 2026 as shares declined. 

NKE Earnings Could Shift The Setup

The unusually large short position also creates the possibility of aggressive buying if Nike delivers results that challenge the prevailing bearish view. S3 partners said options trading indicates investors are preparing for an approximately 8% one-day move.

Jefferies expects Nike to report a better-than-expected start to its fiscal year. Analyst Konik estimates Nike will post $11.5 billion in Q1 revenue and $0.48 per share in earnings. Both estimates are above Wall Street’s expectations of $11.3 billion in revenue and $0.44 per share, according to Fiscal.ai data.

What NKE Retail Traders Are Saying

On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory. 

A user said, “Holding 30k shares for earnings. Phew, getting so nervous but also so hopeful at the same time. In 2 days, make it or break it.”

Another user said, “Best play in the market right now. not ignoring that bullish divergence on the daily. it’s about to pop 20%+. im in.” 

NKE stock has crashed 43% year-to-date. 

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