Hedging My Gains in Crocs (CROX)

One of my long positions is Crocs (CROX). Although, to be honest, I have traded around this position and didn't fully take advantage of the recent spike.

The stock gapped higher after crushing consensus earnings estimates, and materially raising guidance. There is also huge short interest in the stock, which sparked a short covering squeeze as well.

I still think the stock has more upside longer-term, but the recent runup has moved the stock deep into overbought territory. A look at the RSI and stochastic indicators above confirm this view. Today, the company signed another licensing agreement and the stock is up +3.5%.

As such, I have hedged my recent gains, and will wait for a period of consolidation for the stock to find support before I remove those hedges and resume my long exposure to the stock.

long CROX; short calls