Options Bulls Target Zoom Stock After Upgrade

Calls are flying off the shelves after the upgrade

Deputy Editor
Oct 22, 2021 at 10:51 AM
facebook X logo linkedin

J.P. Morgan Securities upgraded Zoom Video Communications Inc (NASDAQ: ZM) to "overweight" from "neutral," saying long-term adoption of the pandemic-era communications tool in businesses will help accelerate future growth. The firm noted that ZM will likely bottom out this quarter, and that the stock already reflects a slowdown in remote video communication as pandemic-related safety measures continue to ease.

The analyst joins a split brokerage bunch. Coming into today, nine of the 18 in coverage considered the stock a "buy" or better, while the other nine recommended a tepid "hold." Meanwhile, the 12-month consensus price target of $369.43 is a 30.5% premium to the equity's current level.

Call traders are blasting ZM following the upgrade. In the first hour of trading, 37,000 calls have exchanged hands, which is three times the intraday average and almost four times the amount of puts traded so far. The two most popular contacts are the weekly 10/22 285- and 290-calls, with new positions are being opened at each.

Last seen up 3.8% to trade at $285.26, Zoom stock has more than halved since its pandemic-era peak of $588.84, achieved on Oct. 19, 2020. The stock has been on the rise in the last couple weeks, however, since its 20-day moving average pushed it to an annual low of $250.11 on Oct. 6. The security has since toppled this trendline, though it still suffers a year-to-date deficit of 18.5%. 


Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI