Handling the Salesforce.com Stock (CRM) Trade Ahead of Earnings The Day After

Nov 18, 2016 | Salesforce Stock (CRM), Selling Put Options, Trade Alerts and Ideas

Salesforce.com Stock CRM

Yesterday I used the Trade Ahead Of Earnings Strategy to setup a trade in Salesforce.com. To this point the trade is up 59%. By next Friday, November 25 the trade could return 82% and by Friday Dec 2 the trade could end with a gain of 113%. This article lays out how the trade is handled after the earnings are released.

After hours the stock went soaring as the latest quarterly numbers blew past estimates. The companies reported 24 cents per share versus estimates of 21 cents. Revenue was $2.14 billion versus estimates of $2.12 billion.

The company reported estimates for the next year to be $10 billion in revenue, a new all-time high for the company. Meanwhile revenues are already up 25% year-to-year and of interest, the company reported they have deferred revenue of $8.6 billion which is a gain of 28% from the previous year.

The quarter turned out to be the best ever for Salesforce.com. Their major competitor remains Oracle however Salesforce.com is making inroads into financial services including finalizing a new deal with PNC Financial Services Group and Citigroup.

Salesforce.com Stock Strategy and Trade Ahead Of Earnings Update

This is a strategy discussion of the trade I setup yesterday and how it is handled in the days after earnings are released.

This strategy discussion includes a full explanation of the trade, the parameters that are used, how the trade is being handled to protect all the capital at risk and provide a profit as well as how the trade result is being boosted to try to earn another 30% by extending the risk an additional week.

This article and trade discussion on Salesforce Stock is for FullyInformed Members.