CRM Options Signal Aggressive Downside Bets: Target $222.5 as Key Support with Call Buyers Eyeing $250 Breakout

• CRM trades at $228.38, down 2.45% from previous close
• Put/call open interest ratio at 0.63, highlighting bearish sentiment
• $222.5 put OI (4,354 contracts) and $250 call OI (1,938 contracts) dominate near-term positioning

Here’s the takeaway: Options market participants are aggressively hedging downside risk while quietly testing optimism for a rebound. The stock’s 2.45% drop today—coupled with RSI at 33.6 and MACD below zero—points to a bearish near-term bias. But the call activity at $250 suggests some traders are pricing in a potential bounce if Salesforce breaks above its 30D moving average of $245.46.

Bearish Put Dominance and Call Contingency

The options chain tells a story of caution. For this Friday’s expiration (11/28), puts at $222.5 ($OI: 4,354) and $227.5 ($OI: 3,373) dominate, implying significant bearish positioning below $230. These strikes align with the lower Bollinger Band at $219.68, suggesting a potential 9% downside target if the sell-off accelerates. Conversely, call buyers are clustering at $240 ($OI: 3,717) and $245 ($OI: 1,697), which could act as short-term resistance levels. The lack of block trades adds uncertainty—no major institutional bets to anchor the stock.

News vs. Options: A Mixed Bag

Salesforce’s recent $2.1B Informatica acquisition and strong Q2 earnings ($10.2B revenue) should have boosted sentiment. Yet the stock remains below its 200D MA ($262.49), and the options market isn’t pricing in immediate optimism. The acquisition’s long-term value (enhanced AI data tools) might not offset near-term profit-taking or macroeconomic jitters. Investors are split: some see the $228.50–$238.50 consolidation range as a buying opportunity, while others are hedging with puts as a buffer against volatility ahead of the December 3 guidance call.

Actionable Trade Ideas

For options traders, consider these setups:

• Bearish Play: Buy the CRM 11/28 P 222.5 puts if the stock dips to $226–$228. Target a 10–15% move below $222.5, with a stop-loss above $230.
• Bullish Contingency: Buy the CRM 12/05 C 250 calls if the stock breaks above $244.50 (200D MA support). This would test call buyers’ resolve and could trigger a short-term rally.

For stock traders, watch these levels:

• Entry near $228.50 if support holds at the 30D MA ($242.21). Target $244.50 if resistance breaks.
• Short sellers: Consider entries at $226–$228 if the stock closes below $222.5, with a stop-loss at $230.

Volatility on the Horizon

The next 72 hours will be critical. If CRM holds above $226, the $244.50 resistance could become a battleground for bulls. But a breakdown below $222.5 would validate the bearish case, with the lower Bollinger Band ($219.68) as the next test. Either way, the options market has already priced in a high probability of directional movement—now it’s about timing the catalyst. Stay nimble, and let the data guide your next move.