Traders apparently believe that Crocs may be headed for a pullback.
optionMONSTER's tracking program detected the purchase of about 7,200 June 11 puts for $1.60 to $1.95 yesterday. This represents new buying, as open interest in the strike was a mere 82 contracts before the trades occurred.
Long puts lock in the price where a stock can be sold, so they make money to the downside. The contracts can be purchased to hedge long positions but are often used to make bearish bets if they are in the money , as were yesterday's puts. (See our Education section)
CROX rose 7.77 percent to $9.85 yesterday but is down 18 percent in the last three months. The footwear retailer reported mixed quarterly results on Monday and is expected to announce its next earnings numbers in early May.
Overall option volume in the name was 14 times greater than average. Puts outnumbered calls by a bearish 11-to-1 ratio.
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