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January 10, 2014  Fri 3:47 AM CT

Crox has pulled back from recent highs, but one trader is betting on a floor in the footwear retailer's stock.

More than 3,400 June 12 puts were sold for $0.30 in 6 minutes yesterday morning, according to optionMONSTER's tracking systems. This is clearly a new position, as open interest in the strike was 1,262 contracts before the trade appeared.

The put seller will keep the $0.30 credit as profit if CROX stays above $12 through expiration in mid-June. If the stock falls under that level, the trader would be on the hook to buy shares at an effective price of $11.70--a low not seen in September 2010. Investors sometimes sell puts this way in hopes of picking up shares at a discount. (See our Education section)

CROX slipped 0.45 percent yesterday to close at $15.64. The stock gapped above $16 on Dec. 30 after Blackstone bought a $200 million stake in the company, but shares have been declining since then.

Total option volume in the name yesterday was more than double its daily average for the last month.
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Using puts to BUY stock

Puts are an options contract that gives buyers the right to sell their stock for a set price on or before a future date. However, puts can also be an effective way to BUY stock.

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