Blue-Chip Tech Stock Could Soon Approach Record Levels

An unwinding of pessimism in the options pits could boost CRM

Digital Content Manager
Sep 16, 2021 at 2:15 PM
facebook twitter linkedin

Blue-chip tech name, inc. (NYSE:CRM) is up 1.1% to trade at $259.10 this afternoon. The security has pulled back on the charts since its Aug. 26, annual high of $275.22, though the $252 level has contained the negative price action. This dip has also placed CRM near a trendline with historically bullish implications, giving investors plenty of reason to believe that the stock could soon surge closer to its record levels. 

Specifically, the equity just came within one standard deviation of the 40-day moving average, after spending roughly one month above this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, eight similar signals have occurred in the past three years. stock enjoyed a positive return one month later in 88% of those cases, averaging a 5.7% gain. From its current perch, a similar move would put CRM over the $272.50 mark, which is just shy of the stock's all-time peak.

CRM 40 Day

An unwinding of pessimism in the options pits could also help the equity climb. This is per stock’s Schaeffer's put/call open interest ratio (SOIR) of 1.08, which stands higher than 95% of readings from the past 12 months. This suggests short-term options traders have rarely been more put-biased.

Now seems like a good opportunity to weigh in on CRM's next move with options. The equity's Schaeffer's Volatility Index (SVI) of 25% sits in the relatively low 14th percentile of its annual range. This means options players are pricing in low volatility expectations for stock right now.


Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners