Rubber sandal maker Croc’s (NASDAQ:CROX) is set to report earnings after the bell tomorrow and shares just saw a spike and a surge in call option activity. The stock traded as high as $7.83 which is just shy of the 52-week high set back in October but has since retreated to $7.45 a share.
Option volume is running six times the average daily volume with the focus being in the March $8 calls. It has traded over 5,000 contracts compared with prior open interest of 3,100 in the strike. The volume is coming in relatively small 100 to 200 contract lots but nearly 85% of has occurred the asking price suggesting fresh buying. Implied volatility has pushed up to 87% today, compared to 84% yesterday and 70% one week ago and 10-day historical vol. of just 40%.