Not only is the stock trending drastically higher, the options (naturally) are doing the same (this stock is up over 10% over the past 5 days). Some interesting option strikes to look at are the Sep 125 and Sep 130 CALL strikes. Granted they both are expiring over the next few weeks, I believe that this stock has plenty of room to move higher. Another 6-7% move in the stock over the next few days would result in a healthy increase in premium of these calls (in my opion 50% or more of a profit premium would not be impossible but LIKELY).
Of course the likelihood of the Sep 130 calls increasing over 50% in value is much higher than the 125 strike. For those of you who are conservative in their approach, consider a spread.
An interesting spread to look at is the SEP 120-125 which is going for $1.76. If the CRM closes at or above 125 at expiration (in 2 weeks), you would stand to recover $5 which is over a 100% profit!!!
I also believe that the market is going to trend higher for the next few weeks (due to its drastically oversold conditions) in which case CRM could continue to rally. Is $125/share in the cards for tomorrow? Wouldn't be impossible but I think $122/share is more likely if we get a rally behind the unemployment numbers we're going to get early in the morning.
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