Income option trade on Crocs

Shares of Crocs (CROX) hit a high of $183.88 in November 2021, and currently down 55% from that 52-week high just 3 months ago to $81.20 today. It's been a strong performer through the pandemic, and the stock has soared over the past 2 years.

The company has been putting up solid growth numbers, and earnings have also come in stronger than expected.

Crocs also recently acquired Heydude, which adds a significant amount of market opportunity and revenue growth to its existing product portfolio. 

Crocs Stock: A Buy After The Heydude Acquisition (NASDAQ:CROX) With a forward P/S under 4 & Heydude looking to add $700M in revenue, Crocs' 2022 revenue should come in around $2.78B. See more on CROX stock here. SeekingAlpha

Shares could trade lower is the broader market continues to sell off, we are selling the March $65 Puts on CROX for $1.00 and believe this is a low risk trade. We like buying the shares at $81, however there's too much market risk to go long today.  Therefore, selling the Puts allows us to enter at a significantly lower price, or we can pocket the income from this trade if shares remain above $64.00 before expiration in 23 days.