Salesforce.com, inc. (CRM) Sees Rare Surge of Call Buying

Salesforce.com, inc. (CRM) calls are trading at four times the usual intraday rate

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Published on Jan 28, 2015 at 2:56 PM
Updated on Apr 20, 2015 at 5:32 PM

Salesforce.com, inc.'s (NYSE:CRM) intraday call volume is nearly quadruple the typical amount for this point in the session, and outpaces put volume by a more than 5-to-1 margin. Meanwhile, the stock's 30-day at-the-money implied volatility has risen 3.6% to 35.9%, indicating elevated demand for short-term strikes.

Diving into the details, CRM's weekly 1/30 59-strike call is seeing buy-to-open activity, according to Trade-Alert. The buyers are expressing confidence that the shares will topple $59 by this Friday's close, when the weekly contracts expire. CRM was sitting north of $59 as recently as Monday, yet delta stands at a slim 0.13 -- suggesting a 13% chance the option will be in the money at week's end.

Today's call-buying bias is unusual, relative to recent options trading patterns. Over the last two weeks at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), CRM has seen long puts initiated at roughly twice the rate of calls. The resultant put/call volume ratio of 1.97 rests 1 percentage point from a 12-month peak.

On the charts, Salesforce.com, inc. (NYSE:CRM) opened higher amid unconfirmed rumors surrounding an activist investor. However, at last check, the stock was roughly 1% lower at $57.19, and has been stair-stepping its way south since encountering resistance near $65 last November.


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