Salesforce Options Traders Betting On Stock Jumping This Much By May Expiration

Salesforce, Inc. CRM shares rose sharply on Thursday after the company reported better-than-expected Q4 results and issued strong guidance. Several analysts also raised their price targets on the stock following quarterly earnings.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Salesforce traded at 6.5x average daily options volume on Thursday.

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There was a buyer of 1,780 of the May 195/220-call spreads at an average price of $7.00 per contract, Khouw mentioned.

The trader expects Salesforce’s stock surging as much as 18% by May expiration.

Price Action: Salesforce shares jumped 11.5% to close at $186.59 on Thursday.

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