ET 13:45

Analyst Applies Inductive Model to Options Trades for Salesforce, Mosaic

An analyst outlined options trading strategies for Salesforce Inc. (CRM) and Mosaic Co. (MOS) based on an inductive, Markovian model assessing a stock's recent price context. The model suggests probabilities for future price movements are influenced by immediate past behavior. For CRM, down nearly 14% year-to-date, the analysis notes a volatility skew favoring puts but projects a 10-week range of $210 to $250 based on a recent pattern of six up weeks within a downtrend. A bull call spread targeting $237.50 by February 20 expiration was highlighted. For MOS, up 19.51% YTD despite weak fundamentals, a 7-3 up sequence suggests a range of $24 to $31, with a bear put spread targeting $27.50 by the same date.

EditorLim