Stock / Symbol: [private_monthly]SalesForce.com / CRM [/private_monthly]
Price at trade post: $125.80
Option Strategy: butterfly call spread
Max Risk: $900
Max Reward: $100 or 11% by Nov 25
Profit Range: $0 - $120 & $130 + by Nov 25
Suggested Stop: @ $125 (as of Nov 18+)
Reasoning: [private_monthly]CRM[/private_monthly] is a very high beta stock, and with the company set to report earnings this afternoon, we're betting that the stock will finish up or down by at least $5 per share from it's current price by next Friday. If we don't get a big move in the stock tomorrow morning, we'll close the trade for a small loss. We're using a day, limit order. Note: better to not get filled on this one than chase it.
Trade Details:
[private_monthly]
STO -2 CRM NovWk4 120 Calls
BTO 4 CRM NovWk4 125 Calls
STO -2 CRM NovWk4 130 Calls
for a net credit of $0.50 per contract (day, limit order)
Requirements
Cost/Proceeds ($100.00)
Option Requirement $1,000.00
Total Requirements $900.00
Estimated Commission $12.95
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