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Price Breaks Provide Option Profits in $CRM
In our TNT Options Trading Service on April 8th, we talked about Salesforce (CRM). We suggested simple targets for $CRM if it should break and make a run either above or below its 50-day SMA, which at the time was right around $158.82. After testing the 50-day SMA after earnings, CRM rallied to retest the […]
In our TNT Options Trading Service on April 8th, we talked about Salesforce (CRM).
We suggested simple targets for $CRM if it should break and make a run either above or below its 50-day SMA, which at the time was right around $158.82. After testing the 50-day SMA after earnings, CRM rallied to retest the swing high around $166.99, and the question was would bulls get trapped from the trading above the key 50-day SMA in a breakdown, or would they power through and leave the bears trapped below?
The stock of CRM would provide a quick intraday put trade by Tuesday’s close as it opened below the 50-day SMA but would fail to close below our first downside target of $155.83, triggering a close of the put position based on discipline with regard to the closing levels.
CRM opened higher on Wednesday with the broader market in better condition and quickly rallied through its 50-day SMA and continued higher into the end of the week, before reversing just below $163.43, the first major resistance. Not closing anywhere in particular, on a daily basis, the upside momentum seemed to have ended, and with it the trade, but not without subscribers profiting off the move!
Subscribers took advantage of these opportunities and were able to profit anywhere from 20% to 50% on the downside, as well as 75% on the upside, using discipline and a strategy involving their flat-lines, momentum, and key moving averages.