The premium on our Zoom Video Communications (ZM) spread has fallen by nearly two-thirds since we put the trade on yesterday. Let’s book profits now, earning a 7% return in two days, or an outstanding 1,278% annualized.
Current Stock Price: $82.91
Cash in Hand: $0.32
- Buy to close the ZM Sep Monthly (9/16) 73 Put for around $0.19
- Sell to close the ZM Sep Monthly (9/16) 70 Put for around $0.08
- Set initial debit limit at $0.11, but adjust as needed to close today
Profit: $0.21, or $21 per spread