Bulls hoping Crocs will be a good fit

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The bulls are looking for Crocs to bounce.

The Heat Seeker detected the purchase of more than 1,500 June 20 calls for $1.45 to $1.50. Volume was about 13 times open interest in the strike.

CROX is up 0.58 percent to $15.50 today but is down about 40 percent in the last three months. Most of that drop followed a poor earnings report on Oct. 17, when weakness in Europe prompted the footwear company's management to cut guidance.

Shares have since then been holding their ground at $15, a level where they peaked in mid-2006 and again in October 2010. Some chart watchers may be interpreting that as support, thinking that CROX will bounce and try to fill some of October's bearish gap down.

Overall option volume is slightly above average, with calls outnumbering puts by 4 to 1, according to the Heat Seeker.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.

This article appears in: Investing , Options

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