The automated Quantcha Trade Ideas Service has detected a promising
CRM was recently trading at $81.54 and has an implied volatility of 28.60% for this period. Based on an analysis of the options available for CRM expiring on 18-Aug-2017, there is a 31.26% likelihood that the underlying will close within the analyzed range of $85.15-$104.07 at expiration. In this scenario, the average linear return for the trade would be 101.26%.
Price target: Zacks Research has updated their six-month price target for CRM to $94.61. This price target is a consensus price created from the price targets published by 31 participating analysts whose targets ranged from $76.00 to $107.00.
Mean recommendation: Zacks normalizes analyst recommendations to a 1-5 scale where 1 indicates a strong buy. Their mean recommendation for CRM has been updated to 1.22, which indicates a strong buy consensus from analysts. Sentiment has moved from 1.17 to 1.17 to 1.16 over the past three months.
Trade approach: The difference between the current price for CRM and the mean price target is $13.46, which represents a 16.03% move (35.19% annualized). Since the 180-day implied volatility for CRM is 28.78%, a bullish strategy could prove effective if the price target ultimately turns out to be accurate.
Upside potential: Using this bullish strategy, the trade would be profitable if SALESFORCE.COM closed at or above $84.66 on 18-Aug-2017. Based on our analysis, there is a 43.82% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the
This is an automated post generated based on a market analysis of delayed data at 2/28/2017 10:25:01 AM ET. The analysis does not include brokerage fees or commissions and is not investment advice.