One of the primary beneficiaries of the stay-at-home revolution brought on by COVID-19 is the video communication industry. In particular, Zoom Video Communication (ZM) has been on a tear in recent weeks as more and more people use the product for meetings, discussions and chats. ZM was trading at new highs when Facebook (FB) announced it would be offering a competing product. On the news, ZM stock dropped sharply while FB shares moved higher. If you want to take a downside position in ZM, you may want to consider put spreads because single puts are expensive.
Jay Soloff is the Options Portfolio Manager at Investors Alley. He is the editor for Options Floor Trader, 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.
