Salesforce (CRM) Options Signal Bullish Bias: Target $270 Calls as RSI Near Overbought Levels

• CRM surges 1.5% to $263.79, trading near its 200-day MA of $257.52.
• Options OI favors calls: 330K call open interest vs. 229K puts (ratio: 0.69).
• Key resistance at $270 (top OTM call strike) aligns with Bollinger Upper Band ($276.19).
• Risks: RSI at 77.64 hints overbought conditions; bearish put spreads at $250 OI:1,326.

The big picture? Options data and technicals suggest a short-term bullish bias, but caution is warranted near overbought levels. Let’s break it down.Bullish OI Clusters Signal $270 as a Focal Point

Options market participants are clearly eyeing the $270 strike. For this Friday’s expiration, 1,351 open interest in CRM20251226C270 calls dwarfs put activity. That’s not just noise—it’s a vote of confidence. The next Friday chain (Jan 2) shows similar call dominance at $265 and $270, with CRM20260102C270 as the top call.

But don’t ignore the puts. The $250 strike has 1,326 OI, suggesting some hedgers are bracing for a drop. Here’s the rub: the put/call ratio (0.69) is skewed bullish, but heavy put OI at $250 could act as a floor if the rally stumbles. Think of it as a "speed bump"—not a stop sign.

Strategic Shifts and Mixed News: Can AI Pessimism Fuel a Rebound?

Salesforce’s pivot away from LLMs and 4,000 layoffs have rattled investors, dragging the stock down 34% from its 2024 peak. But here’s the twist: BTIG’s $335 "Buy" rating and the USDOT partnership expansion could reignite optimism. The recent insider buying ($25M) vs. selling ($186M) also tells a story—execs are hedging, but some big players are accumulating.

The key question: Will the market credit the AI pivot as a cost-cutting win, or punish the retreat from cutting-edge tech? Right now, options data leans toward the former. The $270 call OI suggests traders expect the stock to outperform bearish headlines.

Actionable Trades: Calls for Breakouts, Puts for ProtectionFor options traders: Target CRM20260102C270 calls. Why? The stock is trading at $263.79, just $6.21 from the strike. With RSI near overbought and Bollinger Bands squeezing, a breakout above $270 could trigger a rally toward $280 (next call OI at $280 has 545 OI). Hold through Jan 2 for maximum time decay.For stock players: Consider entries near $260 (30D support: $260.31–$261.09). If the price holds, target $270 as a first exit. A breakdown below $255.63 (200D MA) would force a reevaluation.Bearish alternative: A put spread at $250/$240 (CRM20260102P250 + short CRM20260102P240) caps risk while profiting from a pullback. The 1,326 OI at $250 suggests strong demand if the stock corrects.Volatility on the Horizon: Bulls and Bears in a Tug-of-War

Salesforce sits at a crossroads. The options market is pricing in a bullish bias, but technical indicators (RSI near 78) warn of a potential pullback. The coming days will test whether the $270 level acts as a catalyst or a ceiling.

Here’s the play: Go long calls at $270 if the stock closes above $265 today. That would confirm the breakout and align with the Bollinger Band’s upper trend. If not, watch for a test of $255 support. Either way, this is a stock where volatility isn’t just possible—it’s probable.