Crocs, Inc. Rallies on CMS Acceptance of Custom Cloud Model

Tag : diabetic shoe

The shares of Crocs, Inc. ( CROX : sentiment , chart , options ) are more than 5% higher after the company announced that theCenter for Medicare and Medicaid Services (CMS) accepted the CustomCloud model into its diabetic shoe program. According to thecompany, it's the first molded shoe to receive an approved codeverification from the CMS.
Eddie Scott, the director of CrocsRx, said, "CMS acceptance is anenormous accomplishment as this governing body completed anextensive review of clinical and historical performance data andfound Croslite (TM) material to be a suitable alternative to existing specialty leatherfootwear."
The stock is enjoying a healthy jump today, but CROX is down morethan 78% year-to-date. Any further gains will likely be capped bythe stock's 10-week moving average; this trendline has stifled theshares consistently since November 2007.
Meanwhile, option traders seem to be betting that the equity hasfound a bottom. CROX has racked up a 10-day call/put ratio of 2.85on the International Securities Exchange. In other words, tradershave purchased nearly 3 times as many calls to open as they haveputs during the past couple of weeks. Should the equity's rallytoday prove short-lived, this optimism could unwind against theshares.