Analysts Still See Salesforce Stock As a Buy Here - Shorting OTM Puts Is a Good Play

Despite its recent run-up, analysts still believe that Salesforce Inc (CRM) stock is deeply undervalued. This is likely due to its strong free cash flow (FCF) and FCF margins. Shorting out-of-the-money puts work well here.

CRM stock closed at $253.97 on Friday, July 12. This was up significantly from its recent low of $218.01 on May 18. I discussed this in my June 18 Barchart article, “Salesforce Is Well Off Its Highs and Still Looks Cheap - Shorting OTM Puts Is a Great Way to Play This.”