An even bigger fine could be on the horizon for Skechers, who is the biggest player in the toning footwear arena. The Federal Trade Commission has been in contact with Skechers about making similar unsubstantiated claims. Even before troubles arose with the FTC, The American Council on Exercise raised concerns about claims made by Skechers. More importantly, the damage done to the Shape-up brand will play out significantly in sales. The FTC estimates muscle toning shoe sales grew from $145 million in 2009 to over $1 billion last year. Expect that number to plummet this year, particularly with Skechers now in the government's spotlight.
There looks to be more downside momentum for Skechers and headline risk relating to a possible fine and potentially damaging lawsuit, is enough to recommend avoiding this stock.
Who ever put that collar trade on might give you your shot at the cheap calls. Looks like whoever put it on is putting the pressure on this morning.
Just kind of watching. I sold the trading shares I had bought at $13.20 for $14.75 a while back, but will likely start nibbling at shares again in the $13s if it gets there for trading account (I lean to it will). Might go the cheap call route or sell naked puts in longer term account. Only thing I have right now besides common is Nov $14 naked puts I sold a while back for $1.20, so I might just add to those if the price gets right.