CRM Earnings Play

11/13/13

CRM reports earnings on 11/18. Here are some possible trade setups. Unfortunately, there aren't any Nov4 strikes between 61 and 65. I will wait until closer to earnings before entering any of the trades. The strikes may have to move and the IV should go up.

First, an IC with $1 wide strikes. Since 61 is the highest $1 strike it has a high chance of being tested on the top.

• Iron Condor, CRM @ 57.13
• STO Nov4 60/61C 53/52P
• Credit = 0.50
• Risk = 50
• ROR = 100% in 9 days
• BE = 52.50 & 60.50

Second, another IC but with $2 wide strikes. We lower the break-even on the bottom, but the lack of strikes on the high side forces us to move the short call in order to widen the spread. This also reduces the BE on the top.

• Iron Condor, CRM @ 57.09
• STO Nov4 59/61C 53/51P
• Credit = 1.03
• Risk = 97
• ROR = 106% in 9 days
• BE = 51.97 & 60.03

Third, is a $5 wide IC.

• Iron Condor, CRM @ 57.09
• STO Nov4 60/65C 54/49P
• Credit = 1.87
• Risk = 313
• ROR = 60% in 9 days
• BE = 52.13 & 61.87

Fourth, how about a $4 wide IC?

• Iron Condor, CRM @ 57.24
• STO Nov4 61/65C 53/49P
• Credit = 1.32
• Risk = 268
• ROR = 49% in 9 days
• BE = 51.68 & 62.32