From Dell to UBS, to Signet Jewelers and dozens more…
Many companies have posted better-than-expected earnings reports from the last quarter.
That’s a refreshing reminder that you can still structure your trades for substantial gains this autumn, especially if you lost money during or after bank turmoil in March.
Take Salesforce Inc [CRM].
The cloud-based software giant is the latest to report better-than-expected earnings.
- Earnings were $2.12 per share compared to the $1.90 per share expected.
- The company generated $8.6 billion vs. Wall Street’s $8.53 billion estimate.
- Revenue in the last quarter was up over 11% compared to last year.
This news is what some traders need to ride the stock for fast gains on price movements.
For example:
CRM’s October 13th options calls are now available ($210 strike price + current bid of $2.09). If you understand how to leverage the “Put Butterfly Broken Wing” strategy, you could easily structure your positions for a possible 57% profit over the next 30 days.
However, if you weren’t already interested in buying CRM shares, it gets tricky because:
On the one hand, the stock rose 6% following CEO Marc Benioff’s statement, “We’re leading customers into the new AI era… Based on what we see in the back half of the year, we’re raising our 2024 revenue, operating margin, and cash flow growth guidance.”
But on the other hand, Finance chief Amy Weaver has downplayed expectations.
“We are still seeing elongated sales cycles, additional deal approval layers, and deal compression in our subscription and support and professional-services businesses.”
I believe this is one reason the stock hasn’t rallied past 6% despite Benioff’s remarks, making it complicated for income-oriented sellers looking for bigger profit margins.
But whether the company downplays expectations in the short term and exceeds estimates in the future or plays up future expectations to win more investment today…
We couldn’t care less because we have bigger fish to fry…
Thanks to a “backdoor options strategy” that lets you profit from a stock’s upward, downward, or rangebound movements regardless of recent earnings estimates.
See the #1 market corner with the most significant profit potential this fall.
