Zoom Video (ZM) – Digital Conferencing Outbreak – Feb 24th, 2020

Bullish – ZM $101.76 – Technology

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Market Outlook:
The S&P 500 (SPY) has pulled back on negative divergence this week but remains within a larger bullish trend. We continue to position for a continuation higher but remain cautious of quick pullbacks. 

ZM Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang suggested that Zoom Video’s stock may rise on earnings following strong revenue projections. ZM has broken out in February and may exceed its 52-week high on coronavirus fears. Expecting ZM to rise on earnings, Tony suggests buying a Feb 28/March 105/107 Call Diagonal @ $5.85 Debit. As of Friday’s close, these calls were trading at $5.95 Debit.

We’ve structured this trade in OptionsPlay so you can analyze and view this trade along with the supporting technical chart at your convenience. You can also view the Options Action’s video by clicking on the following link: ZM OptionsAction Video

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