Housekeeping: Salesforce.com (CRM)

On April 13, we initiated a new bullish position on CRM by buying Aug/May $85 calendar spread for $2.90.  The spread has now expanded to $4.70 as CRM continues to trade sideways around $85.  I am making the following adjustment:


- Buy to close May $85 calls for $4.30
- Sell to open June $90 calls for $3.80


The roll can be done for $0.50 net debit.  This stock has 1.95 beta.  Given 3% sell-off in broader markets, I expected much larger decline in shares, but I am amazed how well the stock is holding down only 1.4% as of this writing.  By doing this roll, we now have Aug/June 85/90 call spread at average cost of $3.40.  Currently, the spread is going for $5.30, so we have built-in gains of 56%.  Earnings are expected on 5/17 (not confirmed).  


Attached to the right is new P&L chart using $3.40 adjusted cost for Aug/June 85/90 call spread.  


At some point down the road, I will roll the long leg of Aug $85 calls to Aug $90 calls for $3.00 or higher credit, thus practically cashing out almost 90% of our original cost from the trade.  


Good luck!