I literally can’t believe that CRM is up after hours following a Q4 2008 0.06 EPS. Completely stumped. This stock is so priced for perfection. It is essentially trading at twice its forward earnings growth rate. Craziness especially in this market. About 15 minutes before the close, I put on a options strangle. Stock closed at $52.62. I purchased 1 $55 call option and 2 $50 put options set to expire in about 24 days. I was betting that we would get some movement in any direction – but I had a downside bias. I really didn’t think they would have the numbers. There growth isn’t accellerating and they aren’t beating estimates big time. They raised FY ‘09 guidance, but it amounts to really $0.08 per quarter. Good chance I lost money on this trade as it isn’t moving up really big. Oh well.
Filed under: Stocks | Tagged: CRM, Options Straddle, Stocks
