Re: My friends analysis of why he bought CROX and why it went up 20%..
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The stock is certainly not a buy right now. PE of 40 is way too high. I think a fair price would be about half that. Not to say it can't go up further, but there's no compelling valuation case to be made for a higher price. On the other side, I'm not certain enough of a collapse to go short or buy puts right now.
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what about deep OTM puts? i obviously haven't researched this stock beyond what was said in this thread but it seems if the deep OTM puts are trading cheaply, which they probably are, then buying them would seem to make sense based on the analysis you've presented.
Barron
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