Salesforce earnings will fuel a software slump, options traders say

  • 📰 CNBC
  • ⏱ Reading Time:
  • 29 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 15%
  • Publisher: 72%

Belgique Nouvelles Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

A big, bearish bet on Salesforce in the options market may be bad news for the software space.

That trade represents a $625,000 bet that Salesforce will plunge at least 8% between Monday's closing price of $161 per share and December expiration, and came on a day where the company's options traded at twice their daily volume. Interestingly, as Nathan would point out, the options market is only implying aof about 4%, which is slightly less than the average post-earnings move in the stock.

However, if Salesforce's numbers disappoint investors, Nathan sees the stock plunging even further than the 8% decline that this trader is betting on. "You see that resistance here [at $165], it's been unable to break out," said Nathan. "Look at this multiyear uptrend. [Salesforce] has, obviously, been a big outperformer over that period of time, but to my eye, you have some support at $140."

If Salesforce were to tumble down to that level of support, it would represent a decline of 12.5% from Monday's close.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.

For them maybe

Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 12. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

UnitedHealth forecasts 2020 earnings, midpoint below estimatesHealth insurer UnitedHealth Group on Monday issued its adjusted earnings forecas... No one should be profiting off of 'healthcare'. UHC Guess they will have to deny more medical claims to increase their profit What's wrong with healthcare in the US in one headline.
La source: Reuters - 🏆 2. / 97 Lire la suite »