Call Traders Eye Zoom Video Stock Before Earnings

The equity has finished six of its last eight post-earnings sessions lower

Digital Content Manager
Nov 20, 2023 at 10:50 AM
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Zoom Video Communications Inc (NASDAQ:ZM) will step into the confessional after today's close to report third-quarter results. The equity is up 1.9% to trade at $65.31 at last check, with the brokerage bunch expecting the company to show a rise in quarterly revenue, and earnings of $1.08 per share.

Overhead pressure remains at the $66 level, as well as the stock's 60-day moving average. Today, the stock is eyeing its fourth gain in the last five sessions, though the shares carry a 19.8% year-over-year deficit. 

The security's history of post-earnings reactions is mostly negative. Zoom Video stock finished six of its last eight next-day sessions lower, including a 16.5% dip in May. The shares averaged a move of 7.4% during the past two years, regardless of direction, but now the options pits are pricing in a bigger-than-usual move of 7.4%.

At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the equity sports a 10-day call/put volume ratio of 4.30 that sits higher than 80% of annual readings. This suggests calls have been getting picked up at a much quicker-than-usual clip.

Drilling down to today's options activity, 9,504 calls have already crossed the tape, which is triple the intraday moving average volume, compared to 6,796 puts. The most popular contract is currently the weekly 11/24 60-strike put, followed by the 70 strike call in that series.


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