Bull Call Spread Crocs (CROX) With Yield Up To 758%

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Bought a spread in CROX.

music selection:  “Give To Live” — Sammy Hagar

weigh-in:  187.6 +1.6 – not bad considering how much pizza I ate while watching college football on Saturday!

I have two positions with October expiry that are deeply threatened. Looking at the broad market trend for SPY, the latest pullback bounced right off the support line and the uptrend is confirmed. I’m going to see if the stocks can rally rather than close. If today was expiry, I’d book 1,779 in profit for the month of October.

I like the chart for CROX year to date. I decided to enter a bull call spread, somewhat conservatively with both strikes in the money. Still got pretty attractive pricing. I bought the 150/155 strikes 19NOV2021 expiry bull spread with the underlying trading at 155.79 for 2.35 a share (16 spreads). The trade enjoys 2.20% downside protection. I have 3,771 in the capital at risk in the trade.  Should the trade end in the money, I will earn the full profit over 54 days of 4,229, which is good for 112.1% or 758% annualized.

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