A Trio of Plays to Consider

I am going to look at Salesforce.com (CRM) after earnings, which are due after the Tuesday market close. This is one of those names for which the valuation seems very expensive to some, and may look "cheap" to others. To me, this stock feels very Amazon (AMZN)-ish, if I am free to use that word as an adjective.

Salesforce options are pricing in a move of close to 8%, which is very possible on a stock with a short interest running near 12%. I'm just not sure I foresee a move of $11 or more. It may occur in after-hours or in premarket action, but this is one of those names that does a lot of U-turns after the initial reaction. It is also one of those names for which everyone is expecting a huge reaction, and I'm just not sure we'll see it. I have $155 as the upside target and $140 for a potential downside move -- so simply buying a straddle, naked calls or naked puts here would feel like a lot of risk to me. I'll look to play this one post-earnings....304 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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