CROX/Stock - Insider buying doesn't matter unless it's significant. You have to look at how many shares someone already has and see if they are adding or subtracting more than 10% of their holdings. Even then it could be just normal diversification if that's a significan chunk of their wealth in one place. Most insider buying is theatrical, although sometime a stock is just stupidly cheap but if they "know something" then it's illegal to buy ahead of the public. That's why Buffett announces his support prices at each meeting - no surprises.
We decided CROX was too cheap.
February 16th, 2022 at 1:54 pm | (Unlocked) | Permalink
CROX/8800 – Been a while since we played them. They are a $6Bn company now – that's crazy! Making about $550M a year so $6Bn is very fair but they sold off anyway. I think they gave too good guidance and expectations were too high but nothing wrong with them. Still, I'd let them find a bottom but this is a good entry point.
At the moment, we can:
- Sell 10 CROX 2024 $65 puts for $12 ($12,000) to net in for $53 – about half the current price.
- Buy 10 2024 $75 calls for $40 ($40,000)
- Sell 10 2024 $125 calls for $21 ($21,000)
That would be net $7,000 on the $50,000 spread that's $20,000 in the money – so a good place to start. Let's add that to the Earnings Portfolio, which has plenty of cash.
Also, in the LTP, let's sell 10 of those 2024 $65 puts for $12 – because who doesn't like $12,000?
February 17th, 2022 at 11:55 am | (Unlocked) | Permalink
CROX/8800 – I feel more comfortable at $65. When something changes and a large investor decides to get out – it can take them a while to unwind and pressure stays on the stock.
