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Crocs Stock Surges on Upbeat Earnings, Revenue

Options volume is taking off as well

Deputy Editor
Oct 21, 2021 at 11:13 AM
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The shares of Crocs Inc (NASDAQ:CROX) are surging, up 9.1% to trade at $148.35 this morning, after the retailer's third-quarter earnings and revenue topped analysts' estimates. The company also lifted its full-year revenue forecast, despite global supply chain issues that impacted the current quarter. In response, the equity earned a price-target hike from Piper Sandler to $215 from $212.

On the charts, several short-term moving averages had been keeping a cap on gains this week, though today's bull gap has CROX breaking out above them. Plus, this positive price action has CROX back in the green for the month, and could help it extend a 14-month win streak. 

Options traders are targeting Crocs stock in full force this morning, with options volume running at eight times what's typically seen at this point, and pacing for the top percentile of its annual range. So far, 13,000 calls and 6,024 puts have crossed the tape. The November 160 call is the most popular, followed by the 155 call in the same series, with new positions being bought to open at the latter. 

This marks a break from the bearish sentiment surrounding CROX. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day put/call volume ratio of 0.78 sits higher than 94% of readings from the past 12 months. So while calls outnumber puts on an absolute basis, this high percentile indicates long puts have been getting picked up at a faster-than-usual pace.

 

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