Options Trade Alert on Salesforce.com

NEW YORK (TheStreet) -- Strategic Mindset: At Top Gun Options, we are market neutral with possibilities of surges in volatility.

Target: Salesforce.com(CRM) trading at $147.83

Commit Criteria: CRM Implied Volatility is overpriced relative to its forecast volatility of 9.81% over the trade period. We are looking for possible price movement but for it to stay within its $130 to $165 price range until the exit of this trade.

Tactic: Opening 10 CRM June 2012 Iron Condors (strikes 125/130/165/170) for a $1.15 credit

Tactical Employment of Iron Condor:

Buying to Open 10 CRM Jun 2012 $170 Calls

Selling to Open 10 CRM Jun 2012 $165 Calls

Selling to Open 10 CRM Jun 2012 $130 Puts

Buying to Open 10 CRM Jun 2012 $125 Puts

Net Credit: $115 per Iron Condor for a total of $1150

Max Gain: $1150

Max Risk: -$385 per Iron Condor for a total risk of -$3850

Mid-Course Guidance:

We will be watching for a price movement near the short strikes. As the short strikes are threatened, we will adjust the Iron Condor as necessary.

We don't want trade expectancy dropping below 2%. Based on this we have two price targets at which we need to consider an adjustment. CRM trading below $138.55 and above $152.47 are triggers for adjustment.

Profitability Target:

We will wait for this Iron Condor to expire worthless taking the $1150 credit as profit.

Exit Tactic: We will wait for this Iron Condor to expire worthless in the Advanced Model Portfolio, adjusting as necessary.