Crocs Stock Seeing Post-Earnings Support

What’s more, there was follow-through buying after the security’s last positive reaction in late October, and the shares are now above the $77 mark, which was a breakdown level in August from a trendline connecting higher lows. This level is also the site of CROX’s previous post-earnings reaction, and a retake of this region could squeeze out shorts. With the equity now above a potential trendline of resistance connecting prior three-weeks highs, it looks like an ideal time to speculate on CROX’s next moves with calls.
 
It’s also worth noting short interest has increased 60% since March. Using the 150-day moving average as proxy for average shorted price, shorts are underwater at around $64. This suggests shorts could begin covering into the end of the year. Our recommended call option has a leverage ratio of 3.5 and will double in value on a 27.4% pop in the underlying shares.