[Opening Put Position in Salesforce.com, Inc. (CRM)]
Dear Member:
Salesforce.com, Inc. (CRM) has broken below a support; the 10 day and 20 day exponential moving averages have fallen below the 50. The P/E is around 535, somewhat reminiscent of PEs in tech stocks before the blowout in 2000 and the PEG is very high at around 9. I am placing an order to buy the May 50 puts (CRMQJ) at a limit of $5.80. If the play goes against me, there is an nearby exit if the stock closes back up above the support level.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
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