Stocks vs. Options: Which generates better returns?
Plug in your stock idea to find options trades offering a potentially better ROI.
NEW TO OPTIONS?
Visit our New to Options page to learn more.
Find out more »
Deckers Outdoor (DECK) could be the better shoe bet than Crocs, Inc. (CROX)
Related Symbols: DECK
Mad About Options takes a look at the stocks getting coverage from Jim Cramer, Fast Money casts and other heavy hitters in the financial press and reviews strategies option traders might have used if they agree or disagree with these assessments of the underlying stocks.
The Pick – Deckers Outdoor Corporation (DECK):
On the November 5th edition of Mad Money, Cramer said DECK is a better play than Crocs. Earnings were November 5th in CROX, October 22nd in DECK.
At this time of this report, DECK was trading at $93.43.
Bullish Option Trading Idea for DECK:
Maximum risk: $14.50 plus commissions (the debit paid).
Maximum potential profit: $5.50 minus commissions (difference between strikes minus the debit paid).
Breakeven: The strategy will be profitable if DECK is trading above $89.50 at expiration.
Bearish Option Trading Idea for DECK:
Maximum risk: $21 plus commissions (the debit paid).
Maximum potential profit: $9.00 minus commissions (difference between strikes minus the debit paid).
Breakeven: The strategy will be profitable if DECK is trading below $104 at expiration.
Visit OptionsHouse and www.ONN.tv for new tools that can help you evaluate potential trades. Check out the ONN.tv OptionFinder to evaluate your own potential trades. Any questions? Give us your feedback and ask Jud all your pressing questions.
For more trading ideas and breaking news on the options market, stay tuned in to The Options News Network.
|
If you AGREE with Cramer…
Strategy: bull call spreads
|
|||||
| Leg | Action | Expiry | Stk | Call/Put | Strike |
|---|---|---|---|---|---|
| Leg 1 | Buy | Dec | DECK | Calls | 75 |
| Leg 2 | Sell | Dec | DECK | Calls | 95 |
| Premium: | $14.50 | ||||
| Break Even: | above $89.5 at expiration | ||||
| Max Gain: | $5.50 minus commissions | ||||
| Max Loss: | $14.50 plus commissions | ||||
|
If you DISAGREE with Cramer…
Strategy: bear put spread
|
|||||
| Leg | Action | Expiry | Stk | Call/Put | Strike |
|---|---|---|---|---|---|
| Leg 1 | Buy | Jun | Deck | Puts | 125 |
| Leg 2 | Sell | Jun | DECK | Puts | 95 |
| Premium: | $21 | ||||
| Break Even: | below $104 at expiration | ||||
| Max Gain: | $9 minus commissions | ||||
| Max Loss: | $21 plus commissions | ||||
Higher returns with less capital. It’s called leverage and options have it—stocks don’t. Learn more:
Two Traders, One Strategy Steve and Jared take a look at risk management strategies on the OH platform.
Navigating OptionsHouse Get to know the OH platform and all the tools you have at your disposal.
Enter a stock ticker
What price would the stock have to rise to or drop to for you to admit you’re wrong and put off your trade?
Enter price you think the stock will move to. You can be bullish or bearish.
How many days do you think it will take the stock to hit your target price?
