Stock / Symbol: [private_monthly]Salesforce.Com / CRM[/private_monthly]
Price at trade opening: $110.07
Price at closing: $130
Option Strategy: call back spread
Trade Details:
BTC (Buy To Close) -1 CRM Jan11 110 Call
STC (Sell To Close) 2 CRM Jan11 125 Calls
for a net credit of $1.25
Return: 17.75% ($120 credit at open + $125 credit at close)
Max Risk: $1,380 (at Jan expiration)
Max Reward: unlimited
Profit Range: $0 - $110 + $141.35 (at Jan expiration)
Price Target: $120 (on Nov 19th)
Reasoning: We certainly got our expected big move in the stock when they reported earnings yesterday after market close. We're closing the position here for a 14% gain. If you you're the brave type, you can hang on but you'll need for CRM to close above $141 by January expiration.
Chart:
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