Friday, October 16, 2009

CROX

This once loveable stock had been crushed from $75 to $1. But from early April 09 this stock has started uptrend and go sevenfold. The last closing price is $8.
I admit the buy signal should come yesterday when the stokc break its resistance at $ 7.45.
The stock usually rise two weeks before earning date (Nov 5) and now plus takeover rumours that may push the stock up. The target price from Technical Analysis can reach $10.
Fundamentally, the last earning report is better than expected. The firm is probably mending their financials.
It is up to you want to buy call option or the stock for investment.

Best regards

Snip
Posted by Snip at 5:44 AM

1 comment:

  1. ANCOLLOctober 16, 2009 at 7:22 AM

    Even though CROX is not my favourite, I would rather buy stock than CALL option, since the underlying is less than 10.

    No theta risk, no vega risk,

    When the earning is near, CALL option is more favorable, since Implied volatility usually growing until the day before the announcement.

    ReplyDelete

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