How to trade sales Force (CRM) earning
Salesforce (CRM), the Customer Success Platform and world’s # CRM company, declared a telehealth solution for Salesforce Health Cloud, enabling two-way video chat that gives patients the ability to connect face-to-face with their care teams from any mobile device. Caregivers presently use Health Cloud to get a complete view of their patients, manage their care holistically and engage with them in new ways. Now, with two-way video chat for Health Cloud — powered by Salesforce SOS — providers can deliver more timely, convenient and contextual care, increasing overall patient satisfaction.
More than 191 million1 smartphones are in use in the United States recently, and this trend is changing consumers’ expectations across all industries, counting how they want to interact with their healthcare providers. In fact, Salesforce’s recent “2016 Connected Patient Report” revealed that 62% of U.S. respondents with health insurance and a primary care provider would be open to virtual-care treatments, such as a video conference call for non-urgent matters. In addition, care providers are under enormous pressure to lower costs in an era when 65% of emergency room visits are avoidable2 and hospital readmissions can lead to huge penalties under Affordable Care Act guidelines.3
Analysts give CRM a mean recommendation of 1.70. The company has dropped -4.46% in past 3 months and in the last five trades has moved up 3.29%. The stock has earnings growth of 816.10% yoy and showed a low EPS growth of -21.10% over the past five years. The stock’s price moved up its 200-day moving average of $76.53. The stock is presently trading down its SMA-50 of $80.49.
In our opinion the best way to trade CRM is buying straddle CALLS Options and PUTS on the money around the closing price and sell CALLS and PUTS out of the money.
Buy 80 call sept16/16 for 272$-Sell 85Call sept16//16 for 72$ . Spread cost is 200$.
Buy 80 Put sept16/16 for 267$ - Sell 75 put sept16/16 for 94$ . Spread cost is 173$.
As we see the trade above if the stock price moves up or down 5 $ next two three weeks from today the trade will be making 25%_35% profit . For example if the price goes up to 85$ a share your profit will be 500 +72 (call sell) _272(call buy) _ 173(put spread)=167$ profit target which is about 35% profit margin.
Happy trading
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