fbpx

 

Anytime a company’s name becomes a “verb,” it’s worth billions of dollars… 

And if you try to bet against it, you could quickly find yourself in a world of hurt. 

That’s the case with “Zoom” (ZM) at least. 

Now that all your friends and family know about it, there can be little doubt that it’s part of an unstoppable trend that’s here to stay. 

I’ll even bet that it’s not too long before the company joins the S&P 500. 

That’s why when it comes to trading “Zoom” (ZM) over the recent months, I’ve been long only. 

I took advantage of a couple of monster wins on ZM right as the coronavirus was first breaking out. 

And just recently, I decided to take a swing at it once again. 

Turned out to be a spectacular IPO Payday, handing me 100% gains on the first half, 150% on the next quarter, and a home run 450% on an additional piece.* 

 

Zoom’s Trend Continues, Thanks to Big Location Expansions  

 

No doubt, Zoom is a trending stock right now. 

It’s one of those companies that is actually being helped by the coronavirus by providing remote work and life possibilities. 

Before COVID-19, many people hadn’t even heard of the company. 

Typing in the word “Zoom” on Google Trend on January 1 would have returned an interest level of 4 out of 100 on January 1. 

On April 1, that number shot all the way up to 100. 

But that’s all pretty obvious by now. 

What’s new with Zoom is that they have continued to expand their Zoom Phone cloud phone service into other regions. 

The company just announced that it’s now available in 25 additional countries and territories. 

That may not have been such a big deal if just considering the small Latin American and European locations it added. 

But when you consider the addition of Mexico, Brazil, Argentina, and Hong Kong to the available regions, it’s a pretty big deal. 

 

The 50 Day Moving Average Signaled a Breakout in ZM 

 

Technicals were the biggest factor driving my decision to trade ZM when I first spotted an entry on August 10th. 

The setup on the ZM chart looked picture perfect. 

The last several times ZM has hit the 50-day moving average, it has moved up from there.

And the 50-day moving average was exactly where it was sitting on August 10.

 

 

If ZM closed below 240, I would have closed the position out. 

But it seems like a good risk-reward setup, and I decided to play that as a support line. 

I went ahead and bought the ZM Aug 21 280 Calls  at $1.10

Turned out to be an awesome trade, handing me 100% gains on the first half, 150% on the next quarter, and a home run 450% on an additional piece.* 

 

Learn How I’m Putting on More of These Great Trades 

 

If you missed the win in ZM, check out the setup that I’m eying right now in Pinterest (PINS). 

PINS is another trending stock that’s being benefited by the pandemic right now. 

I even saw some dark pool activity in the stock come through on my scanner, indicating that some big players on Wall Street have an interest. 

If you want to learn more about how I’m trading IPOs, grab a copy of my IPO Jackpots ebook here. 

 

*Past performance is not necessarily indicative of future trading results, and the results presented in this communication is not necessarily indicative of future results, and the results presented in this communication are not typical. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.

 

Author:
Ben Sturgill

Ben leads two services at RagingBull. IPO Payday can help you pinpoint, position, and profit from IPOs. In Daily Profit Machine Ben guides day and swing traders to profit by trading the SPY Index. Ben hosts the RagingBull.com podcast where he shares thoughts on wealth and success with traders, businesspeople, entrepreneurs, and experts to uncover and share some of the wisdom needed to live a successful life.

Learn More

Leave your comment