Salesforce.com (CRM) Offers Value After the Correction
Salesforce.com’s stock price has corrected lower for the past few months which seems to offer value when considering where analyst price targets are set. Take a look at the following article which discusses an average target of $186.97 - Investors Jump Off The Fence: salesforce.com, inc., (NYSE: CRM). Also, Jeffries recently reiterated their buy call with a target of $171. Although a bit conservative compared to the average, it still represents potential for a 14% rally.
____________ advertisment ______________
A stock that yields 67% a year? Really?
If you're happy with stocks yielding you 4% or 5% a year, you don't need this. But if you want to see how we built a portfolio that now pays us a 67% cash on cash return - with no leverage, options, or gimmicks.
Then go here ASAP.
______________________________________
Technicals
There are three main things to consider from a technical perspective. The most important is that the stock is bouncing from its 20-month moving average. This is an indicator it has not traded below on a sustained basis in nearly three years. Further, there is a rising trendline in place as well as a horizontal level. The trendline is drawn connecting the low from late last year with the low that printed in mid-August. There has been a bullish reaction so far from when the stock tested the trendline early in the month. The horizontal level falls near $144 and has been respected as both support and resistance over the last year and currently falls near the trendline to create a confluence.
*source Tradingview.com
If you agree there's further upside ahead for CRM, consider this trade which is a bet that the stock will continue to advance over the next five weeks, or at least not decline very much.
Buy To Open CRM 15NOV19 145 Puts (CRM191115P145)
Sell To Open CRM 15NOV19 150 Puts (CRM191115P150) for a credit of $1.99 (selling a vertical)
This price was $0.02 less than the mid-point of the option spread when CRM was trading near $150. Unless the stock rallies quickly from here, you should be able to get close to this amount.
Your commission on this trade will only be $1.30 per spread. Each contract would then yield $197.70 and your broker would charge a $500 maintenance fee, making your investment $302.30 ($500 – $197.70). If CRM closes at any price above $150 on November 15, both options would expire worthless, and your return on the spread would be 65% (741% annualized).
____________ advertisment ______________
3 Coins Set to Take Over the Crypto Market
I warned investors not to buy Bitcoin, and then it crashed. The crash is over, but Bitcoin's technology is a dinosaur. I know of 3 cryptos with better tech than Bitcoin, and they're poised to dominate the crypto market.
Click here to watch my free video.
______________________________________
Changes to Investor’s Business Daily (IBD) Top 50 This Week:
We have found that the Investor’s Business Daily Top 50 List has been a reliable source of stocks that are likely to move higher in the short run. Recent additions to the list might be particularly good choices for this strategy, and deletions might be good indicators for exiting a position that you might already have on that stock.
As with all investments, you should only make option trades with money that you can truly afford to lose.
Happy trading,
Terry
____________ advertisment ______________
My Favorite Marijuana Opportunity
I've found a company that's rocking the marijuana business to its core. Because it created a unique profit-sharing plan...and began sending regular payouts of up to $9,974 to the folks who signed up for it. This plan is the only one of its kind. And because of its structure - the payouts are 100% backed by a U.S. Federal Law.
Click here to find out more.
______________________________________
Any questions? I would love to hear from you by email (terry@terrystips.com), or if you would like to talk to our guy Seth, give him a jingle at 800-803-4595 and either ask him your question(s) or give him your thoughts. seth@terrystips.com
You can see every trade made in the actual option portfolios conducted at Terry’s Tips and learn all about the wonderful world of options by subscribing here. Why wait any longer to make this important investment in yourself?
Even better, you can become a Terry’s Tips Insider, and receive all our educational reports and materials absolutely free by opening a new account at the best options broker around - thinkorswim. If you open an account with our link, they will give you 60 days of free trading or up to $600, the same deals they give to everyone who opens an account with them. You must use this link to sign up - open thinkorswim account – and once you have funded your account with at least $3500, email Seth@TerrysTips.com and let him know that you have done it, and this is what he will do – sign you for our Premium Service package ($119.95 value plus an extra 4 months of our Premium Service, valued at another $190.80). You get $300.65 worth of services without paying us one penny.
I look forward to having you on board, and to prospering with you.
Terry
|
