A Bull Call debit spread is a long call options spread strategy where you expect the underlying security to increase in value. Within the same expiration, buy a call and sell a higher strike call. Risk is limited to the premium paid (the Max Loss column), which is the difference between what you paid for the long call and short call. Profit is limited to the difference in strike values minus the credit. The bull call strategy succeeds if the underlying security price is above the higher or sold strike at expiration.
We track Bull Call spreads to get an idea of what the smart money thinks about the underlying security.
On January 20, 2020, BMO Capital analyst Keith Bachman sees Customer 360 as a “key differentiator” for customers looking to gain insight on the large amount of data stored in customer relationship management. He believes Salesforce’s fundamentals are improving and that the stock’s valuation remains attractive relative to growth and free cash flow generation. Keith raised his price target for Salesforce to $210 and $190 and reiterated the shares as his “top pick designation.” Salesforce’s connected cloud strategy positions the company to take advantage of one of the largest secular trends in tech, big data, Bachman tells investors in a research note titled “Still the One.”
On January 16, 2020, Wells Fargo analyst Philip Winslow believes the next decade will bring “massive advances” toward a more fully connected and immersive world – one in which artificial intelligence and machine learning, natural language processing, augmented reality, 5G, edge/fog, and the Internet of Things mature and become both commonplace and transformative. He expects software to be a key enabler of this increasingly connected decade. He raised his price target for Salesforce to $215 from $185, while keeping an Overweight rating on the shares. The analyst anticipates continued healthy growth in software spending in 2020 and expects software stocks as a whole to relatively outperform the market.
On January 13, 2020, Credit Suisse analyst Brad Zelnick raised his price target for Salesforce to $215 from $185 as he believes it will outperform in 2020 driven by the company’s leadership in enabling digital transformations and ability to execute against this secular trend. The analyst reiterates an Outperform rating on the shares.
On January 9, 2020, Jefferies analyst Brent Thill maintained a Buy rating on Salesforce, and raised his price target on shares to $210 from $195, as he believes the company’s generation of 20% organic growth is underappreciated by the market.
On January 6, 2020, RBC Capital analyst Alex Zukin upgraded Salesforce Top Pick with a price target of $215, up from $200. Zukin tells investors in a research note that he views Q4 guidance as conservative, and with preliminary FY21 revenue guidance already issued, sees a looming “digestion year” following a flurry of M&A in FY20 that drives meaningful margin expansion in FY21 as the key catalyst to unlock share appreciation. The analyst is modeling an upside scenario that shows the operating and free cash flow margin implications in a scenario where “Core” Salesforce margins expand 125-150 bps annually in FY21 and FY22 to 18.8% and 20.4% in FY21/FY22. Alex says he sees a significant upside potential in 2020.
What’s Next? Make Sure To Review This Lesson On Options Flow Trading