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March 12, 2014  Wed 9:15 AM CT

CRM: SEE CHART GET CHAIN FIND STRATEGIES
A short-term put trade dominates the option volume in Salesforce.com this morning.

optionMONSTER systems show that 8,662 March Weekly 57.50 puts that expire in two weeks were bought for $0.80 in volume that dwarfs the strike's previous open interest of just 113 contracts. Seconds later the trader sold 8,662 regular monthly March 57.50 puts, which expire at the end of next week, for $0.44 against open interest of 11,231.

This could be a new calendar spread, with the trader looking for CRM to be down at $57.50 by Friday of next week. It could also be a roll, closing the nearer-dated puts and buying an additional week to stay in the trade. Either case could be an outright bearish play or a hedge against long shares. (See our Education section)

CRM is down 1.07 percent to $60.37 this morning. The cloud-computing stock was at an all-time high if $67 two weeks ago and down at that $57.50 level at the end of January.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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