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. 

Closing Trade

• ZM – 66% Gain: June 19 $180/$220 Call Vertical @ $17.80

Adjustment Trade

• 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)

Upcoming Event:

Managing Option Positions – Thursday, June 4th @ 4:15 PM EST

DailyPlay Trades & Performance

New! Track the performance and history of our DailyPlay trades with our new spreadsheet!