Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Wednesday, April 1st, and I'm your host, Kim Khan. Our top story so far,

a disappointing guidance update has Nike shares tumbling, but the options market suggests some traders

see the sell-off

is overdone. The company guided for a Q4 revenue decline of 2 to 4%, sharply below the 1.9%

growth consensus estimate. A 20% drop in Greater China revenue added to an already challenging

outlook. Still, activity in the April 10th Options Exhibition chain points to a more constructive direction.

The $60 call is a single most active strike, more than 25% above the current share price,

implying conviction around a potential rebound over the next nine days.

Heavy volume from the $55 and $58 calls also suggests positioning for a move back into the 55 to 60 range.

RBC capital markets says it remains constructive on Nike's midterm recovery potential,

though it now expects the turnaround to take longer than initially anticipated,

citing weakness in Greater China, converse, and sportswear.

On the positive side, RBC noted management appears willing to make difficult decisions to address operational shortcomings.

Analyst broadly say Nike's read-through could ripple across the sector.

Under Armour, Decker's, Skechers, and Lily Lemon all have China exposure.

In Europe, Adidas, Puma, anti-sports, and on-holding will also be in focus.

Among other active stocks, shares of RH are plunging after the company's Q4 results

and forward guidance disappointed investors, even as management said it is navigating what

it called a dire housing market.

For Q1, revenue is projected to decline 2 to 4%, or roughly $781 to $798 million, well below the $876.7 million consensus estimate.

Adjusted EBITDA margin is expected in the 5.5 to 6.5% range down sharply from 13.1% a year

...