NaughtyPines

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

NYSE:CRM   SALESFORCE COM INC
9 months ago
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.
9 months ago
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.
9 months ago
Comment: Peeled off the short put side for a .05 debit.
9 months ago
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.
9 months ago
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.
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