July 2020: CRM $185 – $190 Bull Call Spread



Trade Structure

$185 - $190 Bull Call Spread

Trade Date


Price Paid


Expiration Days



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Trade Rationale

CRM trade is also similar to OKTA and ADBE. I did get in at a slightly higher price point $185 -$190, but I know many of you were able to get in at $180-$185 spread. The $180 support line seems very strong and $180-$185 is a nice entry point for this trade.Also, if you have been trading with me for some time, you will notice that since I do mean reversion trades, after I post the trade alert, you get many opportunities to get into the trade for a better price than me. This is because nobody can catch bottoms or tops, so after I post my trade, the stock can continue going against me for a couple of days. This also brings out a nice point - there is no need for you to drop everything you are doing and pull the trigger when you see a trade alert. I encourage the mentality of looking at the trade, understanding the structure and see if you can get filled. If you don't get filled, simply let the trade go and wait for the next one. There is always another trade around the corner.

Trade Selection Criteria

Overall market movement

The market has been going up non-stop for 10 days, and we got a quick pullback today, when DOW dropped more than 300 points today.

No Earnings or Significant News

Earnings are behind us and were announced on 5/28

Bollinger Bands outside Keltner Channels

Bollinger Bands are outside Keltner Chanels. 

RSI Analysis

RSI is smack in the middle (i.e not oversold or overbought)

ADX Analysis

ADX is pointing down and below 25, indicating that the downward pressure is not sustainable.

Trade Analysis

This trade was a picture perfect trade. CRM took off in our direction after we put on the trade and we were able to close it for 94% profit in 3 weeks.

Trade Outcome




Beginning Account Balance


Ending Account Balance


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