Are Crocs ugly? Maybe. But, people love them. Nearly every story I’ve read about them follows the same template…
1) Denial – I can’t believe people wear those things.
2) Curiosity – Everyone that wears them can’t be a moron.
3) Conversion – Wearing them is like having a massage parlor on my foot.
4) Salesman – I don’t want to be the only one wearing these contraptions. Oh, and by the way, look at the stock.
This about.com article illustrates the point nicely. Note the shoe’s wonderful pink hue. To be fair, though, Zack’s and Jim Cramer are both touting it. To quote Jim Cramer, “I sense the bears starting to take one right in the jugular…Crocs at 39 going higher. Just introduced a whole new college line. Crocs is basically…for me!”
The company’s history is another thing people love. A scrappy little shoe maker selling their wears at boating shows so impresses their customers with the shoe’s comfort, style and affordability that they spread like wildfire. And, according to croc’s website, they’re vegan friendly. Seeing CROX at the top of a recent SmartSearchXL search I did on PowerOptions wasn’t a surprise. The NOV 06 Call (CQJKH) at $1.25 was a surprise. And the stock closed Monday at $36.95. This fits nicely into a covered call investing strategy.
| SmartSearchXL Covered Call Search for October 24 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock Sym |
Stock Price |
Option Sym |
Expire &Strike |
Opt Bid |
%Dnsd. Prot |
%If Unch. |
%If Asgnd. |
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| CROX | 36.95 (+0.04) | CQJKH | 06 NOV 40.0 (26) | 1.25 | 3.4 | 3.5 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
With a potential upside of 12% and 3.4% in downside coverage, it is hard to sit still on this one. The max exposure on the trade is $3,695/contract. With Christmas around the corner and all of the hype, these things may end up in a few stockings.
Going back to the first paragraph, I realize this article fit nicely into the template. How about we all make money off this and instead of putting Crocs in our stockings, we go to Mazatlan?
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PowerOptions provides Internet based tools for analyzing stock options with specific search criteria and for finding potentially lucrative option income. For those seeking to execute a covered call investment strategy for their personal portfolios, PowerOptions provides an Internet based search engine for finding potentially lucrative income producing covered call stock options positions.
[tags] covered call investing, covered call investment strategy, investment strategy, option income, poweroptions, stock options, Crocs Shoes, CROX, Zacks, Jim Cramer [/tags]