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CROCS Inc. (NASDAQ: CROX) opened at $90.85. So far today the stock has hit a low of $90.37.60 and a high of $93.57. As of 11:00, CROX is trading at $91.22, up $0.25 (0.3%).The stock has been rising steadily over the last several months, and has reached a new one year high today. Jim Cramer loves CROX right now, citing the fact that stores can't stock the shoes fast enough. He also thinks the stock will rise further once more analysts start covering it – right now, Cramer says, CROX is drastically under-covered. Recent technical indicators for CROX have been bullish and steady, while S&P does not yet follow this stock, underscoring Mr. Cramer's point.
For a bullish hedged play on this stock, I would consider a July bull-put credit spread below the $70 range. CROX hasn't been below $70 since April and has shown support around $80 recently. This trade is very aggressive and could be risky if the stock reverses course quickly, but even if that happens, CROX would have to fall by more than 24% for this position to be in trouble.
Brent Archer is an options analyst and writer at Investors Observer. DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in CROX.
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