Leveraged play looks for Crocs to pop

By
A A A

Crocs reports earnings results Thursday afternoon, and the bulls are looking for a pop.

optionMONSTER's Heat Seeker tracking system detected the purchase of about 4,000 May 21 calls for $1.08 and the sale of an equal number of May 21 calls for about the same price. Volume was more than twice open interest in both strikes.

The trade resulted in a net cost of about zero and will simulate owning shares in the producer of molded-resin footwear, generating leveraged profits to the upside and quick losses if it falls.

CROX rose 2.99 percent to $21.01 yesterday. It more than tripled in 2010, then entered a period of consolidation during which it made higher lows while staying trapped around $19. It broke free of that pattern, known as a bullish triangle, last week.

The company has benefited from a rebound in popularity and strong overseas growth, and the stock has been squeezed higher against significant short interest. The last earnings report on Feb. 24 beat consensus and first-quarter guidance was above forecasts.

Yesterday's option trade in CROX pushed total options volume in the name to 7 times greater than average, 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 The NASDAQ OMX Group, Inc.

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


This article appears in: Investing , Options

Referenced Stocks: CROX

optionMONSTER

optionMONSTER

More from optionMONSTER:

Related Videos

Stocks

Referenced

Most Active by Volume

64,159,633
  • $100.86 ▼ 0.76%
63,552,623
  • $16.71 ▼ 0.18%
60,140,251
  • $42.71 ▲ 0.38%
52,385,870
  • $17.51 ▲ 5.86%
50,329,585
  • $13.75 ▲ 29.84%
43,337,551
  • $16.16 ▼ 1.40%
40,126,911
  • $3.605 ▲ 0.56%
39,836,742
  • $3.81 ▼ 2.56%
As of 9/16/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com