Trade Alert - (ZM) May 2, 2023

When John identifies a strategic exit point, he will send you an alert with specific trade information as to what security to sell, when to sell it, and at what price. Most often, it will be to TAKE PROFITS, but, on rare occasions, it will be to exercise a STOP LOSS at a predetermined price to adhere to strict risk management discipline.

Tech Alert – Zoom Video Communications, Inc. (ZM) – BUY – TRIPLE UP

Zoom Video Communications, Inc. (ZM) May 2023 $66-$71 in-the-money vertical BEAR PUT spread at $4.25

Opening Trade

5-2-2022

expiration date: May 19, 2023

Portfolio weighting: 10%

Number of Contracts = 23 contracts

I am executing a bearish trade that underlying shares of video conferencing company Zoom (ZM) will stay below $66 in the next 17 days.

This is my 3^rd position against ZM.

A few more small banks are on the ropes – I define that by a share price down 40% in the morning.

The Federal government trying to save the financial sector means that all small banks are screwed.

All deposits are flying towards the big 4 banks of JP Morgan, Wells Fargo, Bank of America, and Citigroup.

Do not buy this stock. This is only a short-term options position. Pay up to $4.35.

Here are the specific trades you need to execute this position:

Buy 23 May 2023 (ZM) $71 put at……….….………$9.45

Sell short 23 May 2023 (ZM) $66 put at………….$5.20

Net Cost:……………………..…….………..…......….....$4.25

Potential Profit: $5- $4.25 = $.75

(23 X 100 X $.75) = $1,725 or 17.65% in 17 days

If you are uncertain on how to execute an options spread, please watch my training video by clicking here.

The best execution can be had by placing your bid for the entire spread in the middle market and waiting for the market to come to you. The difference between the bid and the offer on these deep in-the-money spread trades can be enormous.

Don’t execute the legs individually or you will end up losing much of your profit. Spread pricing can be very volatile on expiration months farther out.

Keep in mind that these are ballpark prices at best. After the alerts go out, prices can be all over the map.

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