Crocs ripped yesterday, and now traders expect a pause.
optionMONSTER's tracking systems detected the sale of about 7,000 January 20 calls, most of which priced for $0.25. Volume was more than 5 times open interest in the strike.
CROX is down 1.68 percent to $18.25 in morning trading. Yesterday the footwear company jumped 16 percent after management said in a preliminary release that fourth-quarter revenue would come in at the high end of its forecast range. Complete year-end results will be published at the end of next month.
Shareholders often sell calls after a stock rallies because it lets them collect some income from the move without unloading their shares. That provides some cushion to the downside but obligates them sell shares at the strike price if the stock keeps running. (See our Education section)
Overall option volume in CROX is almost 5 times greater than average so far today.
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