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Home › Forums › Swing Trades › Breakout Trade in CRM
This is a post-earnings breakout play in CRM.
After a very strong showing on its earnings report, the stock has put in a pop-drop-and chop pattern.
We’re looking for a breakout above 49.25 and a test of 50.12.
If we get above that, we’re at all time highs and hopefully the momentum train will pick up.
Best structure is to buy the Oct 50 calls with a stop under 48.40
After forming a second base, the stock has broken out, and the Oct 50 calls are now up .60 from our initial entry point.
The smart thing to do now is sell 1/2 position and then move the stop up to 49.80
CRM has seen a very impressive run post-breakout. There is currently a lower high devloping, so I would look to raise stops from 49.80 up to 52.90– I like that stop because it’s under the “obvious” level and under a whole number, so you don’t get shook out due to stop runs.
The Oct 50 call option is now up to 4.30, from an initial buy point of 1.65.