Salesforce Options Traders Betting On Stock Hitting New 2023 Highs After Earnings

Salesforce, Inc. CRM shares surged to a new all-time high on Tuesday ahead of the company’s earnings report.

Salesforce is expected to release quarterly earnings after the closing bell on May 31. Analysts project the company will post quarterly earnings at $1.61 per share on revenue of $8.18 billion for the latest quarter.

On CNBC’s "Options Action," Mike Khouw of Optimize Advisors said Salesforce traded more than 3x the average daily options volume on Tuesday, with calls outpacing puts volume.

Options markets are implying a move of +/-9% in the company’s stock.

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There were buyers of 4,180 of the June 2 weekly 240-calls at an average price of $3.33 per contract, Khouw mentioned.

The trader expects Salesforce’s shares to surge to new highs by Friday.

On Tuesday, Canaccord Genuity analyst David Hynes maintained Salesforce with a Buy and raised the price target from $215 to $230, while Wells Fargo analyst Michael Turrin maintained the stock with an Overweight and increased the price target from $225 to $250.

Price Action: Salesforce shares gained 1.6% to close at $218.87 on Tuesday, and added 0.5% in the after-hours trading session.

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