Options Bets… $157 on salesforce.com in 90 days? (CRM)

Posted in Options 
November 22nd, 2010

Last week at 24/7 Wall St. we noted how the analyst pack was chasing salesforce.com (NYSE: CRM) with higher and higher price targets despite many formal ratings being cautious to neutral.  What is interesting is that options traders are stepping in and making serious upside exposure bets to the same stock with out of the money call options.

Today’s unusual volume is now only about 10% out of the money so it might not sound as crazy as if you would have seen this trade a month ago.  The big speculative trade was in the FEB-2011 $150 CALLS where some 2,087 contracts have traded with the last trade being at $6.95 per contract, making a virtual $157.00 break-even.  These are all new positions as the open interest is listed as being only 359 contracts.

What is another standout is the FEB-2011 $180 CALLS where some 1,170 option contracts have traded against an open interest of 1,220 contracts.

JON C. OGG

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