Take Profit/Adjustment (ZM) – June 3rd, 2020
Zoom (ZM) Take Profit/Trade Adjustment
Zoom has touched our target price 2 days before the earnings announcement. For clients with 1 contract of the ZM trade, it’s time to take profit on this trade. For clients with more than 1 contract and expect further gains, adjust the trade by taking risk off the table and play for further upside. We will cover this type of strategy during our Thursday Education event.
• ZM – 66% Gain: June 19 $180/$220 Call Vertical @ $17.80
• Roll to ZM June 19, $210/$250 Call Vertical @ 5.70 Credit
Close the existing position for a $6.90 profit and purchase the June $210/$250 Call Vertical for $11.70 for a total risk of only $4.80 (risking only 2.3% of ZM’s stock price)