Crocs, Inc.

CROX ER Lotto Short

CROX SHORT

CROX recently had a huge run up for their earnings. Around 40% from the last quarterly ER. It's at heavy resistance on the weekly chart and RSI. Multiple tests to break 53 on the daily, all were rejected. 2 grave stone dojis, 1 false bullish Harami, and it closed of on a hammer. These are very bearish set ups IMO.
This is a ER lotto play
The run up was simply too much for a business that was hit pretty hard from the pandemic. I'm expecting a correction from the earnings.

Optimal Entry
This is an ER play so whenever you feel good. I'll probably fill 1/2 at opening and 1/2 at closing.
PT purple: trend line. Expecting a retest from earnings.
SL if this backfires SL is the green resistance.
Contracts
11/20 49/50c bear spread
Sell the 49c and buy the 50c. This will create a credit spread that is around 0.6
or
11/20 49/50p bear spread
Buy the 50p and sell the 49p. This should have a debit of around 0.3-0.35

If you don't gamble earnings don't take this play. I'm using money I don't mind losing. Mange your risks!

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