Rolling our ZM put contract to a higher strike price.

SHOP has bounced a bit from when we initially bought our put contracts. But the speculative video conferencing stock still looks extremely vulnerable — especially if the broad market sells off.

Rolling our put contract lets us buy more intrinsic value at a discount, and sets us up for better profits when ZM trades lower. Plus, having a bearish position for ZM helps to balance our exposure with plenty of bullish positions already in play.

• Selling (to close) the ZM August 19th $110 Puts
• Buying (to open) the ZM August 19th $120 Puts
• Limit: DEBIT of $6.50 or less
• The new position will represent roughly 8.4% of our Spec Model capital
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• 10:49 Executed
• Sold 6 ZM August 19th $110 Puts @ $7.42
• Bot 6 ZM August 19th $120 Puts @ $13.66
• Net Debit: $6.30