Millions of individuals have been introduced to Zoom Communications (ZM) as a result of the coronavirus pandemic of 2020.
With markets having pulled back overnight and ZM trading in consolidation, I’ll consider making my move today.
And I’d like to walk you through how you could do the same as well…
| Ticker Code | Ticker Name | Ticker Industry | Price Change | Average Volume (50)* |
| FB | Facebook Inc | Internet Content & Information | 5.82% | 25,877,962 |
| AMZN | Amazon Com Inc | Internet Retail | 19.51% | 4,788,750 |
| SPOT | Spotify Technology SA | Internet Content & Information | 30.13% | 3,658,812 |
| MARK | Remark Holdings Inc | Internet Content & Information | -15.83% | 35,468,333 |
| GRPN | Groupon Inc | Internet Content & Information | -41.36% | 2,024,856 |
| IZEA | IZEA Worldwide Inc | Internet Content & Information | 44.14% | 15,900,127 |
| ZM | Zoom Video Communications Inc | Internet Content & Information | 19.41% | 12,919,685 |
| ETSY | Etsy Inc | Internet Retail | 28.92% | 3,961,688 |
| BABA | Alibaba Group Holding Ltd | Internet Retail | 9.15% | 18,999,306 |
| GOOGL | Alphabet Inc | Internet Content & Information | 5.69% | 1,869,471 |
| W | Wayfair Inc | Internet Retail | 19.82% | 2,319,967 |
| EVER | EverQuote Inc | Internet Content & Information | 3.85% | 471,212 |
| LKCO | Luokung Technology Corp | Internet Content & Information | 5.71% | 2,305,550 |
| MTCH | Match Group Inc | Internet Content & Information | 3.59% | 9,662,800 |
| IQ | iQIYI Inc | Internet Content & Information | 25.86% | 10,998,687 |
| JMIA | Jumia Technologies AG | Internet Retail | -6.06% | 2,732,106 |
| BZUN | Baozun Inc | Internet Retail | 23.78% | 1,708,849 |
| OSTK | Overstockcom Inc | Internet Retail | 42.70% | 3,495,608 |
| IAC | Iac/Interactivecorp | Internet Content & Information | -128.88% | 7,513,754 |
| GOOG | Alphabet Inc | Internet Content & Information | 5.58% | 1,748,046 |
I love when fast-moving stocks such as ZM trade in consolidation for a few days, only to make an explosive move to the upside or the downside (when you’re trading with me, making money in both green and red markets is possible) in the days to come.
It’s how I made $7,050 on FSLR in about an hour yesterday…
We know ZM has seen a surge in demand through 2020 as millions of new users have taken to virtual communication upon transitioning to working from home.
But what could make investor demand increase right now?
In my opinion, we will see a second wave of consumer demand increases for ZM’s products, or ZM will raise its prices in order to increase revenue.
And according to Barrons, ZM is planning on raising their customer prices effective immediately, but the stock itself has dipped this morning with broader markets.
So when will I be convinced to pull the trigger and trade ZM myself?
As soon as I see financial professionals buying or shorting ZM as well.
Oftentimes a catalyst of this nature could result in an upgrade on the stock itself in the days ahead, or investors may see this bullish catalyst as an opportunity to exit their long positions as the stock has already nearly tripled in price-per-share in 2020.
While we don’t know where ZM will go from here, financial professionals almost always know something ahead of time.
Following their paper trail can be a fantastic tease with a profitable trade being right around the corner, and that’s exactly how I trade. Today I am looking at the tickers in Internet Content, Information and Retail that these professionals have been searching.
As for a trading plan, I’d like to see ZM trade above $260/share in order to enter a potential call option sweep – simply to avoid fighting the overall trend of the market, which as of right now, is red.
If ZM pulls back further from here, I’ll simply consider it a possible dip-buying opportunity in the days ahead and be patient with it today.
I’ll send you a watchlist this afternoon with additional trade ideas!
Happy trading,
Davis Martin
America’s #1 Options Trader
Disclaimer: This is not investment advice. This article is for information purposes only and opinion-based on financial advisor data across a selection of websites. Investors should be cautious about any and all investments and are advised to conduct their own due diligence prior to making any investment decisions.