Carter Worth And Mike Khouw's Zoom Video Communications Trade

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.

 

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date of Trade
ticker
Put/Call
Strike Price
DTE
Sentiment
Posted In: OptionsMarketsMediaCarter WorthCNBCMike KhouwOptions Action
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!