• Chart of the Day: salesforce.com (CRM)

    by  • February 1, 2013 1:27 pm • Quick Hits, Tony Venosa's Chart of the Day • 0 Comments

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    Today’s chart is of salesforce.com (CRM) which provides cloud computing and social enterprise solutions to various businesses and industries worldwide. The company delivers customer relationship management applications through Internet or cloud.

    Ticker:  salesforce.com (CRM)

    Strategy:  Long Trade

    What I Am Looking At:

    • First Trust ISE Cloud Computing Index (SKYY) outperforming the S&P 500 by nearly 2 percent on a year-to-date basis
    • CRM up over 50 percent year-over-year
    • Bouncing from uptrend line shown on the chart
    • Just below the all-time high
    • $188 is double the 2011 low, could be potential target
    • Peak put open interest for the February series is located at the 170-strike, could be supportive on a reversal
    • Peak call open interest for the February series located at the 175-strike, could see a delta-hedging rally as shares strengthen above $175
    • 11 percent of the float is sold short after peaking in mid-December
    • Nearly 13 days for short positions to be fully covered (based on average daily volume)
    • 10-day buy-to-open put/call ratio exceeds 2, indicating an extreme preference for puts versus calls
    • Quarterly revenue growth (yoy) 35 percent
    • Unconfirmed earnings date is 2/21/13

    Trigger:  Buy at current levels with a suggested stop below 40-day moving average ($169)


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    Tony Venosa, CMT is a Senior Options Strategist and works on the trading desk at Schaeffer’s Investment Research. He joined Schaeffer’s in 2010. He has worked in the finance industry for over 15 years. He began his career as a trading assistant in Chicago on the floor of the Chicago Mercantile Exchange. He later moved upstairs and worked as a commodities broker on both the retail and hedging side. He left the brokerage industry to begin his trading career as a proprietary equities trader at a Chicago firm. In 2000, Tony moved backed to his hometown and continued trading his personal account. He later went on to earn his Chartered Market Technician designation. He earned a B.S. in Finance from Miami University. Tony’s main focus is short-term directional option trading.


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