Rolling our ZM put contracts to a higher strike price.
Shares of ZM moved higher in the wake of the new Omicron variant. The expectation is that lockdowns may spread through certain parts of the world causing more demand for ZM’s products.
At the same time, ZM is the poster child for high-growth / low-earnings stocks that are quickly falling out of favor. ZM’s bounce over the last few trading sessions should quickly reverse, falling back into the strong downtrend the stock has been in for most of this year.
We’re rolling 5 of our 6 contracts, and selling the final contract at the current market price. This lets us buy more intrinsic value at a discount, setting up for better profits when ZM trades lower. And reducing our position to 5 contracts puts the value of this position more in-line with the overall value of our Spec Trading Model.
- Selling (to close) five ZM January 21st $200 Puts
- Buying (to open) five ZM January 21st $225 Puts
- Limit: DEBIT of $16 or less
- The new position will represent roughly 11.1% of our Spec Model capital
~~~~~~~~ - 11:38 Executed
- Sold 5 ZM Jan 21st $200 Puts @ $13.89
- Bot 5 ZM Jan 21st $225 Puts @ $30.00
- Net Debit: $16.11
ALSO
- Sell (to close) remaining 1 ZM January 21st $200 Puts
- Limit: $13 or more
~~~~~~~ - 11:38 Executed
- Sold 1 ZM Jan 21st $200 Put @ $13.89