Credit Spread on Crocs

Yes those weird yet very comfortable shoes that one of my friends just loves…He owns three pairs!…. Crocs (ticker symbol:CROX) is on Brent Archers credit spread list today.

It seems that the Europeans do not like them! More specifically the patent office decided that they are not unique enough to give a patent, so the share price is dropping dramatically.

Brent is suggesting - “For a bearish hedged play on this stock, I would consider a March bear-call credit spread above the $45 range…we will make a 7.5% return in 11 weeks as long as CROX is below $45 at March expiration. Crocs would have to rise by more than 56% before we would start to lose money.” For more of Brents explanation check out his post here —> Crocs (CROX) finds trouble with EU patent

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