It probably comes as no surprise, but there has been heavy options activity in Zoom Video Communications (ZM). The popular video communication platform has seen its usage skyrocket as people are forced to work from home. Everyone from school teachers to business executives are using ZM extensively for online meetings, lectures and discussions. Traders seem to be selling short-term puts in ZM, expecting it stay above $110 prior to Friday's expiration. A safer way to make this trade is by using put spreads, which cap the amount that can be lost if the trade doesn't work out as planned.
Jay Soloff is the Options Portfolio Manager at Investors Alley. He is the editor for Options Profit Engine, an investment advisory bringing you professional options trading strategies, with all the bells and whistles of Wall Street, but simplified so all you have to do is enter the trades with your broker.
