Today a Covered Call position was established in Salesforce.Com Inc. (ticker symbol CRM) when the Covered Calls Advisor's buy/write limit order was executed -- 100 shares were purchased at $200.01 and 1 March 18th, 2022 Call option was sold at $13.63 at the $190.00 strike price. Given the Covered Calls Advisor's current cautious Overall Market Meter outlook, a moderately in-the-money Covered Call position was established -- the Delta was 71.7, which closely approximates the probability that the Call option will be in-the-money on the options expiration date. In addition, the Implied Volatility of the Call was 46.9 when the position was established, well above the current VIX of 33.4. There is no quarterly earnings report or ex-dividend date prior to the options expiration date.
According to Reuters Research, Salesforce has a Strong Buy rating by the 42 analysts covering the company. Thirty-three analysts rate it as either Buy or Outperform, nine rate it Neutral, and none rate it as either Underperform or Strong Sell. Their current average target price is $295.95 which is +48.0% above today's $200.01 purchase price.
Some key numbers for this Salesforce.Com Covered Call position are:
Covered Call Cost Basis: $18,638.67
Profit if Assigned on Expiration Date: $361.33
Days Until Expiration: 15
Absolute Return-on-Investment: +1.9%
Annualized Return-on-Investment: +47.2%
As always, I encourage your email questions related to the Covered Calls strategy.
Regards and Godspeed,
Jeff Partlow (The Covered Calls Advisor)
partlow@cox.net
