Options Bulls Scored Big on Crocs Stock's Latest Rally

The security has added more than 21% quarter-to-date

Digital Content Manager
Dec 2, 2022 at 11:08 AM
facebook twitter linkedin

Subscribers to our Schaeffer's Weekend Trader service notched a 101% profit with our suggested Crocs, Inc. (NASDAQ:CROX) January 20, 2023 70-strike call in less than a month. Below, we dive into our reasoning for betting bullishly on the retail stock.

At the time of or recommendation on Sunday, Nov. 6, CROX was fresh off a 11% bull gap from a third-quarter earnings and revenue beat. This put the shares above a potential trendline of resistance connecting prior three-weeks highs, as well as the $77 region, which was a breakdown level in August from a trendline connecting higher lows. That also the site of the stock's previous post-earnings reaction as well, and a retake of that region could have squeezed out shorts.

It's also worth noting that short interest had also increased 60% since March. Using the 150-day moving average as proxy for average shorted price, shorts were underwater at around $64, suggesting they could begin covering into the end of the year.

Though short covering is still on the table -- the 5.13 million shares sold short make up 8.5% of the stock's available float -- CROX did surge since our recommendation. In fact, Crocs stock was last seen up 1.2% at $100.86. Prior to yesterday's multi-month high, we closed our position, allowing traders to collect the full 101% profit and double their money within a month.

  CROX Intraday


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners