4 Trade Ideas for Salesforce: Bonus Idea

Here is your Bonus Idea with links to the full Top Ten:

Salesforce, $CRM, comes into the week approaching resistance. This is after rising from a 80% retracement of the move up from the December 2022 low to the top at the start of March. It is the third try at this resistance and now the 200 day SMA. The Bollinger Bands® are starting to open higher to allow a move. The RSI is rising in the bullish zone with the MACD positive and climbing. There is resistance at 264 and 268.25 then 272.50 and 278 before 288 and a gap to fill to 293.50. Support lower is at 256.50 and 251 then 245. Short interest is low at 1.4%. The stock pays a dividend with an annual yield of 0.61% and has traded ex-dividend since July 9th.

The company is expected to report earnings next on August 28th. The August 30 Expiry options chain, covering the earnings report, shows an expected move of $22.50 between now and expiry with biggest open interest at the 245 put strike and the 270 call strike. The September options chain has biggest open interest at the 240 then 250 put strikes and on the call side at the 270 strike. The October chain has biggest open interest at the 240 and 250 put strikes and then on the call side it is spread from 250 to 300.

Salesforce, Ticker: $CRM

Trade Idea 1: Buy the stock on a move over 264 with a stop at 256.

Trade Idea 2: Buy the stock on a move over 264 and add an August 30 Expiry 260/240 Put Spread ($6.90) while selling the October 290 Calls ($6.15).

Trade Idea 3: Buy the September/October 280 Call Calendar ($2.75) while selling the August 30 Expiry 237.50 Put ($2.45).

Trade Idea 4: Buy the October 240/270/300 Call Spread Risk Reversal ($3.10).

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the August options expiration in the books, saw equity markets show strength, continuing the climb out of July pullback.

Elsewhere look for Gold to continue its uptrend to new highs while Crude Oil consolidates in a tightening range. The US Dollar Index continues to move to the downside in consolidation while US Treasuries consolidate in their downtrend. The Shanghai Composite looks to continue the short term trend lower while Emerging Markets have re-broken resistance and may start a new uptrend.

The Volatility Index looks to remain low after a rapid pullback to levels from 2 weeks ago making the path easier for equity markets to the upside. Their charts look strong, especially the SPY and QQQ on the longer timeframe. On the shorter timeframe both the QQQ and SPY will gain buyers on a move higher next week over short term resistance. The IWM is showing its own strength as well breaking back above long term resistance. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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