Salesforce Is Well Off Its Highs and Still Looks Cheap - Shorting OTM Puts Is a Great Way to Play This

Salesforce Inc (CRM) stock is still over 25% below its three-month highs even after rebounding from lows. It still looks cheap here based on its strong free cash flow (FCF). One way to play this is to short out-of-the-money puts.

In morning trading on Tuesday, June 18, CRM stock is at $230.38, down from $307.77 on March 22. However, the stock is still worth over $270 per share over the next year based on its strong FCF and FCF margins.