We deduce a model relevant for the description of the ferromagnetic half-me
tal chromium dioxide (CrO2), widely used in magnetic recording technology.
The model describes the effect of dynamical, local orbital correlations ari
sing from local quantum chemistry of the material. A finite-temperature sol
ution of the model in d = infinity provides a natural explanation of the op
tical response, photoemission, resistivity, and the large Woods-Saxon ratio
observed in experiments. Our study confirms the important role of many-bod
y dynamical correlation effects for a proper understanding of the metallic
phase of CrO2.