Salesforce.com, inc. (CRM) Bears Prepare for Earnings

Salesforce.com, inc. (CRM) reports earnings after the close on Wednesday

by

Published on Feb 23, 2015 at 2:30 PM
Updated on Apr 20, 2015 at 5:32 PM

Bearish speculators are jumping on Salesforce.com, inc. (NYSE:CRM) ahead of the company's earnings report, scheduled for release after the close on Wednesday. Puts are trading at four times the typical intraday rate, and are outpacing calls by a more than 3-to-1 margin. Leading the way by a mile is the March 57.50 put, where over 7,500 contracts have crossed -- almost five times as many as the next closest option. It appears some traders are buying to open the contracts, in hopes of CRM dropping below $57.50 by the close on Friday, March 20, when the contracts cease trading.

The equity has a history of disappointing in the session after reporting earnings. Over the past eight quarters, the shares have dropped over 4.5% five times in the session subsequent to reporting. Today, CRM is following in the bearish footsteps of the broader equities market, and was last seen 1.4% lower at $62.86, meaning it would need to fall an additional 8.5% to hit $57.50.

Overall, the security has had a solid 2015 so far on the charts, adding 6%. In the past three months, CRM has outperformed the S&P 500 Index (SPX) by nearly 8 percentage points.

Meanwhile, the majority of analysts have a bullish opinion on Salesforce.com, inc. (NYSE:CRM). Specifically, 86% of covering brokerage firms rate the shares a "buy" or better.

Daily Chart of CRM Since January 2015 With Marker at $57.50

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