This morning I was doing my normal routine of reviewing stocks that were showing some elevated activity in the pre-market. One of the stocks was CROX (Crocs Inc) that was seeing a nice gap up move after some guidance. At the other end of the spectrum was URBN (Urban Outfitters Inc.) which was a large gap down move on the CEO resignation.
Given the outsized move in each I elected to monitor both of them for a potential pairs trade idea – just to play for some mean reversion. Here is the Daily chart on each:
I currently have this pairs trade on with CROX showing some good continuation up but URBN bouncing nicely as well to keep the trade flat at the moment.
Note: I do have a long position in CROX in my LT account.