Call Spread on CROX on 4/3/2023

Crocs, Inc. (CROX) designs, develops, manufactures, markets, and distributes casual lifestyle footwear and accessories for men, women, and children worldwide. 

It offers various footwear products, including clogs, sandals, slides, flips, wedges, platforms, socks, boots, shoe charms, and slippers under the Crocs brand name.

The company sells its products in approximately 85 countries through wholesalers, retail stores, e-commerce sites, and third-party marketplaces. 

Shares are heading higher in an upward trading channel. On February 16th, CROX reported Quarter December 2022 earnings of $2.65 per share on revenue of $945.2 million. The consensus earnings estimate was $2.18 per share on revenue of $939.3 million. Revenue grew 61.1% on a year-over-year basis.

Guided Higher: The company said it expects first quarter non-GAAP earnings of $2.06 to $2.19 per share on revenue of $838.33 million to $858.13 million. The current consensus earnings estimate is $2.04 per share on revenue of $825.48 million for the quarter ending March 31, 2023. The company also said it expects 2023 non-GAAP earnings of $11.00 to $11.31 per share on revenue of $3.90 billion to $4.00 billion. The current consensus earnings estimate is $10.90 per share on revenue of $3.97 billion for the year ending December 31, 2023.

We will be trading April 28th Call Options

Entry Point: $126.40

Trading Range: $46.08 to $143.50

Trade Buy 1 April $125.00 Call at $8.70 Sell 1 April $135.00 Call at $4.50 For a net debit of $4.20 Profit/Loss Analysis Breakeven at $129.20 Maximum profit is $580.00 at strike of $135.00 Maximum loss is ($420.00) at strike of $125.00 Closing Summary Sold 1 April $125.00 Call at $11.00 Bought 1 April $135.00 Call at $1.50

Position closed on 4/13/2023 at price of $9.50 with a 126.19% gain in 10 days.

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