Crocs, Inc (CROX) makes the ugliest shoes in the world and the sell like mad. My brother, who doesn’t invest in stocks, has been encouraging me to get into CROX (the stock, not the ugly shoes) since it was in the low 70s. CROX is trading at 85.31 as I write this. He mentioned it again last week and I finally took a look at it again yesterday. I put a limit in to catch the next little dip and sell a put at July 75. They started off a little up this morning and then took off before I could blink. I would just jump in now since it has some momentum, but CROX seems to be on the high side of its trading range. The 80 strike seems to be better than the 75 now and I have changed my order to $0.50 above the current ask price.
Schaeffersresearch isn’t too high on CROX right now rating it a 4 out of 10. Analysts are mixed. With a forward P/E of 23.57 and a PEG of 0.94 it’s possible that CROX could have limited downside, even after such a strong run recently. I thought the fad would fade by now, but now that I’ve opened my eyes I’m becoming a believer in their (slightly) longer term prospects.
Technorati Tags: naked puts, investing, stocks, options, covered calls
My wife bought some CROX shoes for each of my 2 kids, and I am starting to notice them everywhere-on young and old, so that’s a good sign for sure.
On personal note, my head is swimming lately. I applied for level 2 and was approved – not only covered calls but option purchases, and assume can be a put or a call now.
I have tried to research alot lately and am amazed how many online offer financial sites/memberships/fees/etc.
I really enjoyed the comments the other day because I face the choice to get out of equities a bit and do options more. While we know there are many ways to skin a cat, as they say, let me put my question this way, “How do you primarily set your investment goals?”
When I started with covered calls last fall, I pursued $1,000 month profits, not so much any %’s. Because if I hold stock and make this goal, great. But if I am only willing to risk 100 monthly on a call/put purchase, even if it returns 400, giving 300% profit, i have made less money.
Honestly, i don’t advocate any special “way”, but am always afraid I can get tripped up investing a certain way and leaving something out.
So much is involved, personal comfort level, goals, needs, current economics, amount of investment, age, etc. Sometimes it seems like in looking for answers, I am left with too many questions or concerns.
Thanks to anyone for personal insights/experiences that can be offered. All I want is to stay focused, not get complacent, without getting stupid
I cover my main broader goals in my “Goals” page, but I think you mean more short term? I use % since I don’t really have enough money to make me feel good about the $ return. I like to have at least 20% annualized return for each put sold and always look for more. With volatility still historically low, I don’t fret about it too much. I’ve learned not to force a trade just to make the $ I hoped for. I end up losing more that way eventually. I’ve been very tempted to do just that recently, but still continue to set limit orders and wait. I haven’t sold anything in a while, but could have a few orders hit any day now that the market is dropping a little. Overall, my main goal is to beat the main indicies, but really want to double what they return. If I can’t beat the indicies, I have no reason to spend my time trying other than the fun of it. Using % I can compare myself to any index or mutual fund and know where I stand.