Traders were selling calls in Crocs yesterday as the footwear maker fell to a two-year low.
A trader sold 5,000 January 15 calls for the bid price of $0.20, according to optionMONSTER's systems. The volume was 10 times the open interest in the strike at the start of the session, clearly indicating a new position.
CROX was down 2.2 percent to close at $12.12 after trading as low as $12.05 earlier in the day. Shares gapped down from above $16 two weeks ago on disappointing earnings results.
Our systems did not identify any corresponding stock trades in CROX yesterday, so this call selling could be an outright bet that the stock won't fill that gap in coming months. The options could also have been sold against an existing long stock position in a covered call trade, which would be bullish up to the $15 strike price but not beyond. (See our Education section)
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