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

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

Digital Content Group
Feb 23, 2015 at 2:30 PM
facebook X logo linkedin


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
 

Unlock Weekend Profits with Chris Prybal's Favorite Strategy Up +487.5% in 2024

With the markets going left, right, and sideways, you need to have a plan now more than ever. 

Expert Trader Chris Prybal is no stranger to volatility, and has mastered finding big stock rallies while other traders aren't looking over the weekend. Rallies that produced gains like +207% on RTX calls, +236% on MARA calls, and +238% on NET calls.

A few simple moves on Sunday at 7pm could be the “Secret Sauce” your portfolio needs to not just stay afloat, but make unprecedented gains in this turbulent market.


Don’t sit on the sidelines, beat the market with Chris Prybal's strategy. Join him now!

 

 
 
 


 
 

Rainmaker Ads CGI