On CNBC's "Options Action," Carter Worth spoke about Zoom Video Communications Inc ZM. The stock dropped 50% from its highs and now sits at a critical point. Worth expects it to continue to move lower as the stock has already broken to the downside relative to iShares Expanded Tech-Software Sector ETF IGV.
Mike Khouw wants to sell a call spread in Zoom. He wants to sell the September $350 call for $12.90 and buy the September $360 call for $9.50. With the trade, he is going to collect $3.40 in premium if the stock stays below $350 at the September expiration. The trade starts to lose money above $353.40 and it can maximally lose $6.60 if Zoom jumps to $360 or higher at the September expiration.
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