NaughtyPines

CRM -- EARNINGS PLAY: MAR 4TH 54/72 SHORT STRANGLE

NYSE:CRM   SALESFORCE.COM INC
CRM             announces earnings tomorrow after market close, so look to put on a play in the waning hours and minutes of the NY session to take advantage of any volatility crush that occurs post earnings announcement.

Here's the setup, which naturally might have to be tweaked depending on how much CRM             moves tomorrow intraday:

March 4th 54/72 Short Strangle
Probability of Profit: 75%
Max Profit: $122/contract
Buying Power Effect: Undefined

Notes: I played with doing a defined risk strategy, but I just can't get the 1.00 credit/contract I would want out of the play.
Comment: Filled a slightly tweaked setup -- a March 4th 55/70 short strangle for a 1.27 credit. Post-announcement, CRM's up to about 68.00. Fingers crossed that it retreats somewhat from that price.
Comment: Peeled off the short put side for a .05 debit.
Comment: Another "too close for comfort" roll: rolled the 70 short call to the March 18th 71 for an additional .55 credit and sold the March 18th 62 put for an additional .53.
Comment: Covered today for a 1.48 debit. From head to toe: Credits: 1.27 + .55 +.63 = 2.45; Debits: .05 + 1.48 = 1.53. 2.45 - 1.53 = .92/contract. After fees/commissions a .74/contract ($74/contract) profit.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
Home Stock Screener Forex Signal Finder Cryptocurrency Signal Finder Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out