Buying ZM put contracts.
Zoom Communications (ZM) moved higher during the bear market rally but is now rolling over.
The company is facing stiff competitions from more entrenched tech players and still trades with a premium multiple (even after its fall from grace).
I expect shares to test and possibly break the May lows, giving us a chance to profit from a new bearish position.
The trade also helps to add balance to our overall Spec Model Portfolio which has been situated to take advantage of a bear market rally.
- Buy (to open) 6 ZM August 19th $110 Puts
- Limit $17 or less
- The new position will represent roughly 10.7% of our Spec Model capital
~~~~~~~ - 10:26 Executed
- Bot 6 ZM Aug 19th $110 Puts @ $16.48