Salesforce (CRM) has come under fire Wednesday and is down $3.60 to $171.05 on increasing volume of 2.95 million shares after the SEC posted to its site correspondence between the regulator and the company related to Saleforce.com’s reporting and accounting. The most recent letter, dating Dec 13, said the SEC had completed its review but warned that “comments do not foreclose the Commissoin from taking any action” — LINK. Salesforce.com is expected to make additional disclosures when it files its yearend 10K for the period ended Jan 31. In the options market, investors seem more interested in the very short-term, as January 165, 170 and 160 puts are the most heavily options traded in CRM today. Most of the action has been in small lots, as the top trade in the name today is 500 Jan14 85 deep out-of-the-money [DOOM] puts for $2.04 per contract. Total volume is 12K calls and 29K puts and 30-day implied volatility is up 8 percent to 28.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.