Update on ZM...Share your thougts? MA 5 & 20Weekly
MA 5 and 20 on both price and volume .
Share your thoughts?
ZM trade ideas
$ZM Zoom is stronger than ever$ zm, I believe, the Zoom share still carries surprises, as it has achieved widespread with the Corona pandemic, this does not mean that it is linked with the pandemic only - rather, it is strange that it still attracts huge numbers of users despite the emergence of the vaccine
ZM coming down to 360 then 295 for any potential bottomIf you want to be in for longterm try to buy it below 360 as starter position and full position at 295
ZM - trade setupEveryone is asking about ZM. I would not touch ZM here unless it breaks 365 or bounces from there. We need to really trap longs here and this support would be a great way to do that. If it does break and trap the longs there will be fast pressure to the 200MA which would be a great trade for some of you new guys to pad your accounts. If we don't break 365 this is a great spot for a long swing trade higher which will also be a great trade for new accounts. Don't be early let it break or bounce off support before you get in.
If your using Options use at least a month out strike. Enjoy
Zoom December - January uptrend chartHere is my take on Zoom for the upcoming weeks.
On Nov 10th and Dec 14th it clearly formed a double bottom, the RSI bounced off of that and drawing a Pitchfork on the bottom of Nov 10th (A), And the Top of Nov 30th (B) and the bottom of Dec 14th (C) can clearly show us a new trend, on Dec 21th in the open it clearly got rejected off the first resistance that the pitchfork is showing, and it bounced off yesterday (Dec 22th) at 396 on the support line.
The KDJ indicates that a trend on the 2-hour timeline might be due, we just need to see the first few hours of the market today. If it falls below 403 today, it failed. If not, then we will be in an uptrend towards January.
Also, it is forming a descending wedge, so there are numerous signs of a bullish trend. Share me your thoughts as well.
Thanks!
Option strategy sell Strangle/Straddle In the chart, you see the strangle strategy when sold, I will show what will happen if the implied volatility changes, you can see this strategy being bought in the next post. You can come back to this post and watch how things play out.
As a rule of thumb, strategies are sold when implied volatility is relatively high and bought when implied volatility is relatively low, the seller would try to anticipate IV decrease and the buyer would try to anticipate IV increase.
Selling Strangle
The strangle is a position involving calls and puts, they will have the same expiration date but different strike prices. Selling Strangle is established by selling Out of the money calls and puts when the stock price is usually in the center.
This strategy when selling a strangle is neutral, the seller anticipates that in the life of the options the stock price will remain between the strikes, and at expiration, the options will be worthless and the seller will receive all the credit.
The green zone is the profit zone, the yellow lines are the break-even lines, the blue lines are losing lines, the lime green lines represent when you can realize 50% of the credit. I added pink broken lines to show where this strategy will have the maximum profit at expiration.
For example, from the chart, these options are from 29/10/2020 close in Zoom.
The strategy sold for -> 44.6, meaning credit is received.
Stock price-> 489.68 , Upper strike (call)-> 600, Lower strike (put)-> 400
Days-> 50, Impleid volatility-> 82% (0.82), date-> 29/10/2020
For one position we received 44.6, multiplying by 100 (number of shares per contract) if the stock price will be between 400 to 600 at the expiration date , all the options will expire worthless, the seller will receive all the credit $4460 this is the maximum profit.
Upper break-even point at expiration:
The upper strike + credit received = 600+44.6 = 644.6
Lower break-even point at expiration:
The lower strike - credit received = 400-44.6 = 355.4
Between 600-644.6 and 355.4-400, one of the options is not worthless at expiration, so it has intrinsic value, the seller will get between $0-$4460, the seller will need to close the position before expiration to avoid assignment.
If the price got to 689.2 or 310.8, the position is losing, in this case (-$4460), this strategy has a limited profit and theoretically unlimited loss.
You can see from the chart that It will take at least 22 days to realize 50% of the credit, some traders don’t want to wait until expiration and they prefer to close the position at 50% credit.
How implied volatility affects the position? (20% increase and decrease)
The blue area is the new profit zone, the purple lines are the new losing lines.
If the IV will raise after entering the trade (left chart), the seller will need to wait 18 days before his position will re-enter the profit zone, what was before a profit area will now be a losing area.
On the other hand, if the IV will fall (right chart), the seller will profit much quicker, the losing lines will be farther away.
Selling Straddle
This strategy is a private case to the strangle (the general strategy), in the straddle both options the calls and puts are at the same strike price, usually At the money.
The strategy is sold at the money because the time premium is the largest there.
This means that the seller receives a lot more credit for this strategy, the downside is for getting the maximum profit the stock price needs to finish exactly at the strike price, the probability for this to happen is less than 1%.
The opportunity to realize 50% of the maximum profit will take longer than the strangle, in this example 39 days. The break-even lines will be much closer.
The maximum profit for this example is $11,690, much larger than the strangle.
The risks are also much larger.
How implied volatility affects the position? (20% increase and decrease)
The selling of the strangle and straddle are not for beginner traders, due to the risk involved, a less risker strategy is the Iron Condor .
In the next post, I will show the buying side of the strategies.
Will ZM be back on track with the Covid-19 strain and stimulus?Will ZM be back on track with the Covid-19 strain and stimulus?
Any thoughts?
$ZM - Bull Target $440 & Bear Target $380Target $440 Until Bull Flag breakout trendline holds
Bear Target & Support $380 -> Break below Bull Flag Trendline
$ZM The Ultimate Covid Fear Stock.
If Fear spikes so could ZOOM
Pre market the stock is above the Fixed Range POC's .
Key resistance will be the previous supporting trendline. (WHITE)
A bullish move could bring $450 in the short term
ZM short look so so great jobSocial distance maybe from now to next summer, so that ZM look so so good in near future target 450~500$
$ZM - Bull Target $432.5 & Bear Target $380Bull Flag Target $432.5
Break Below Bull Flag Target $380
$ZM looks like made a short term bottomIt has handled the $375-$395 well to form a base and now looks set to move higher. A move above $410 with volume should test gap pivot resistance at $435
$ZM - Bull Target $430-$445 & Bear Target $383Cup & Handle Break out
Target $430 - $445
Break below trendline
Target $383
How is a sticker ZM on next trend...?CDC director signs off on Pfizer vaccine with first shots expected Sunday morning 12/12.
ZM unclear direction, waiting on consolidation and 1-2 startI'm not necessarily "bullish" on this name, still waiting for more clear direction to be taken. Copyright Rohan Karunaratne 2020.
