Jay Soloff breaks down unusual options activity in in Salesforce.com.
One of the hottest stocks this past week was Salesforce.com (CRM). The software company recently posted huge earnings and was also added to the Dow Jones Industrial Average. Being added to the DJIA is a big deal for a stock because index tracking funds have to buy it to add it to their portfolios. This generally causes a short-term boost in the stock price. As expected, there has been a lot of call activity in CRM.
Last week, there was also a fair amount of out-of-the-money call selling, which could be a sign of covered call positioning.
Jay Soloff is the Options Portfolio Manager at Investors Alley. He is the editor for Options, an investment advisory bringing you professional options trading strategies, with all the bells and whistles of Wall Street, but simplified so all you have to do is enter the trades with your broker. Click here for your copy of the Beginner’s Options Guide before it’s no longer free.
