Options Traders Cozy Up to CROX After Earnings

The security gapped to fresh highs this morning

Deputy Editor
Jul 22, 2021 at 10:33 AM
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The shares of Crocs, Inc. (NASDAQ:CROX) are surging this morning, up 8.4% to trade at $131.92 at last check, after the shoe company adjusted second-quarter earnings of $2.23 per share, blowing past the $1.60 estimates. Revenue also exceeded expectations, and CROX lifted its full-year guidance amid strengthening global demand. Out of the gate, the stock raced to a record high of $136.50. 

Crocs stock is now up over 109% year-to-date. Crocs stock's ascending 50-day moving average has guided CROX higher, capturing several pullbacks during the last couple months. Putting the retail stock's rapid rise in perspective -- last year the shares were trading around $35.

There haven't been any upgrades and/or price-target hikes issued this morning on CROX, but that's likely because sentiment surrounding Crocs stock was mostly bullish coming into today. Of the eight analysts in coverage, five called the stock a "strong buy," with zero "sells" on the books. Meanwhile, short sellers have been hitting the exits in droves when it comes to Crocs stock. Short interest fell 33.6% in the last two reporting periods, though it still makes up a solid 5% of CROX's available float. 

CROX's typically quiet options pits are exploding with activity already today. So far, 15,000 calls and 1,813 puts have crossed the tape, a whopping 37 times the intraday average. The August 130 call is the most popular, followed by the 120 call in the same series. New positions are being opened at both, which may suggests buyers of the latter are expecting Crocs stock to maintain today's post-earnings pop. 

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