OptionsHouse

Options Trading News

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.
Share this article with your friends


Related Stories

CRM

Salesforce.com gets vote of confidence

June 17, 2016

The cloud-software company reported bullish quarterly results on May 18 and is up 12 percent in the last three months.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

The Movement of Delta

In our last column, we spoke about delta. You might remember that we discussed what delta was and what factors affected or changed delta. As you recall, we stated that three factors will have an effect on delta. They were movements of time, volatility, and underlying price. Today, we want to take a further look into the change of delta, this time focusing on change due to the movement in the underlying price. 

View more education articles »