Bull call spread strategy suggested for Salesforce recovery

Recent market activity has caused significant declines in tech stocks, especially the Nasdaq, which fell 14% over a three-week period starting February 19. This sharp correction can be tough for investors but often sets the stage for recovery by bringing stock valuations back to reasonable levels. Among the tech stocks affected is Salesforce (CRM), which fell 26% in about six weeks. However, recent indicators show that CRM might be turning around. Two key technical indicators are being monitored: the RSI (Relative Strength Index), which suggests that CRM was oversold, and the MACD (Moving Average Convergence Divergence), which has recently signaled a potential trend reversal. To capitalize on this potential bounce in Salesforce stock, a bull call spread trading strategy is being recommended. This involves buying a call option with a strike price of $280 and selling another call option at $285. If Salesforce closes at or above $285 by April 11, the trade could result in a 100% return on the capital invested, with a potential profit of $2,500 from a $2,500 investment. This strategy offers a way to take advantage of a possible recovery in Salesforce while managing risks. Further information and similar trade setups can be found in resources provided by the author, Nishant Pant.