How “Trendy” Shoes Can Unlock Option Profits

This stock is building up to take off͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ Crocs, Inc. (CROX) appeared on our list of [ Crocs, Inc. (CROX) appeared on our list of [compressed stocks](this morning. As the charts below show, the convergence of the moving averages is signaling that a breakout move could be right around the corner. Looking at the charts below you can see that five out of the last six signals saw the stock make moves outside of the one-standard-deviation probability cone. Three of those moves made it outside of the two-standard-deviation cone. A one-standard-deviation move is typically a nice profit. A two-standard-deviation move is wildly profitable. If history is our guide, there is a good chance that CROX will make a big move before October 18th. [This Volatility Term Structure]( chart for CROX shows us the implied volatility for the at-the-money options for each expiration. The volatility expectations for the October 18th expiration are the lowest with enough liquidity and time for the stock to make a profitable move after the compression signal. [This]([MDM]([graph](compares the modeled expected distribution for future stock prices (the orange line) with the actual distribution of the stock’s prices over the past two years (the blue histogram). You can see that the actual stock movement does not match the expected. This graph tells us that the stock makes large moves more frequently than current options prices expect. That is good for option buyers. [This Volatility Cone](chart shows the implied volatility of the at-the-money options at each term (the yellow dots) along with the two-year historical average. It also shows the historical high and low over the same time period (the purple lines). This chart confirms that options at every term are priced below what one would expect based on the average historical volatility over the past two years. That is a good sign for option buyers. CROX’s stock prices are compressed. The stock has a history of making big moves shortly after a compression signal. Options prices for the October 18th expiration are relatively inexpensive. This is an option buying opportunity. To get the specific details and prices on today’s trade ideas, be sure to read today’s ODDS Online Daily Option Trade Idea. Thank you, Don Fishback --------------------------------------------------------------- See Related Articles on [TradewinsDaily.com]( [How “Trendy” Shoes Can Unlock Option Profits]( [Squeezing More Out Of This Trade]( [Chart of the Day: Nvidia (NVDA)]( [Hard to Ignore this Staple’s Trend]( [Institutions Piling into this Utility Stock]( --------------------------------------------------------------- [TradeWins Logo]( © 2024 Tradewins Publishing. All rights reserved. | [Privacy Policy]( | [Terms and Conditions]( | [Contact Us]( Auto-trading, or any broker or advisor-directed type of trading, is not supported or endorsed by TradeWins. For additional information on auto-trading, you may visit the SEC's website: All About Auto-Trading, TradeWins does not recommend or refer subscribers to broker-dealers. You should perform your own due diligence with respect to satisfactory broker-dealers and whether to open a brokerage account. 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