Salesforce.com, Inc. bullish Credit Spread (NYSE: CRM)
TheOptionPlayer.com recommends a Salesforce.com, Inc. (CRM) short-term (7-day) bullish option strategy. Investors could simultaneously:
Sell the June week-four expiration CRM $125 put for $.94 (yesterday's closing price)
Buy the June week-four expiration $120 put at $.44 (yesterday's close)
The difference between funds received and paid out is a .50 credit which we keep if Salesforce.com closes above $120 on June 29th, but immediately exit the position if it appears the price will end up lower. See Guidelines page at www.theoptionplayer.com/ for explanation on how trade is set up.
Why we recommend it:
We recently recommended a similar trade that was profitable. The reason for the previous Salesforce.com, Inc. (NYSE: CRM) trade recommendation is still valid. Salesforce.com is one of the leading computer and software services stocks and as confirmed in the 60 min. chart below we expect recent support should hold above $126. At the very least there is a high probability that the price will remain above the $125 target for another week as it has not been that low since January.
52-Week High: $164.75
52-Week Low: $94.09
Average Volume (3 month): 2,536,490