Zoom (ZM) – Zooming To Work – June 1st, 2020
Bullish – ZM – $179.48
The S&P 500 (SPY) continued its strength after breaking out higher last week. Despite growing geopolitical tensions with China, markets continued to disconnect from fundamental valuations and economic numbers. Above $302, markets enter a new bullish phase as bearish sentiment continues to grow.
ZM Trade Idea:
On CNBC’s OptionsAction show on Friday, Tony Zhang looked at Zoom Video earnings, with working from home becoming a permanent trend. Expecting a strong earnings number next week and a major double top at $180, Zoom is primed for a potential bullish breakout. Expecting ZM to trade higher on earnings, Tony suggests buying a June $180/210 Call Debit Spread @ $10.50 Debit. As of Friday’s close, this spread was trading at a $10.50 Debit.
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