Shares of Crocs rocketed nearly 42 percent with heavy options activity and rose even further in after-hours trading ahead of the company's earnings report Thursday.
The footwear retailer normally trades 1,467 options a day but yesterday saw some 41,000 contracts change hands. Calls outnumbered puts by more than 10 to 1, according to OptionMonster's tracking systems.
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The most interesting action was at the June 4 strike, where more than 13,000 calls dwarfed the average volume of just 89. With open interest at 1,985 contracts, the activity indicated new buying.
Crocs shares ended the regular session up 41.95 percent to $3.25 and gained another 6.13 percent in after-hours trading. The options activity indicates that traders expect the stock to break above $4 by the time the June contracts expire on the third Friday of that month.
Chris McKhann is an analyst and writer for OptionMonster.