salesforce.com, inc (CRM) is a cloud computing and enterprise solutions company providing customers with customer relationship management applications and software. The company’s stock is currently trading around $53.20 in a 52 week range of $36.09-$67.00. The stock has been under performing the market this year with shares falling around 3.55% year to date. Despite this relative weakness in CRM options traders are bullish through May expiration as orders hitting the tape today are very strong. Earlier this morning several blocks of the CRM May 55 calls began hitting the tape. A trader bought 4,603 CRM May 55 Calls for $0.72, shortly after this order a trader bought another 3,143 of these calls for $0.85. Nearly 15,000 contracts have now traded on that line and will create the largest line of open interest in May. Although the stock is trading under the Ichimoku Cloud recent price action has been bullish. With order flow this strong CRM sets up well for a long position from a risk vs. reward perspective.
Block Trade: Trader Bought CRM May 55 Calls for $0.72
Risk: $72 per 1 lot
Reward: Unlimited
Breakeven: $55.72
Andrew Keene
KeeneOnTheMarket.com
