Zoom Video stock rises to 330% this year after it garnered high videoconferencing rates. According to Todd Gordon, the managing director at the Asche Wealth Partners, Zoom stocks are ready for more upside. Zoom is notably one of the hottest stay-at-home capitals during this time of the coronavirus pandemic.
For this year alone, the videoconferencing stock of Zoom Video has increased to a massive 330%. Gordon believes that Zoom has a robust technical set-up, and if they garner more fundamental tailwinds, these can help take Zoom Video to higher levels. Gordon said that better reports on Zoom earnings are expected to be released on the last day of August.
“Zoom has held in extremely well, a little bit of consolidation over the last couple of weeks, but we’re pushing higher on the back of news that Facebook in their videoconferencing Portal will support Zoom. Facebook is going after sort of the corporate kind of clients in the new work-at-home, a stay-at-home environment that looks like it’s going to be with us longer than we imagined… It’s just an unbelievable uptrend here in Zoom, and as I’ve mentioned, we have just recently broken through this bit of consolidation, and we don’t see any reason why we should not be able to continue higher, moving up into the $300s and beyond”
Todd Gordon, Asche Wealth Partners managing director
This week, Facebook mentioned that Zoom would be one of the apps made available on their portal device starting in September. Based on records, Zoom continued to rise by 18% this week and was able to close at $289.68 per share on Friday.
Gordon’s Ascent Wealth Partners handles Zoom in its portfolio. The mentioned company added that although they do not have plans to add to the position, there is a way option traders could benefit from a short-term move into and after the earnings release. He proposes purchasing the 290 strike call expiring mid-September and selling the 310 calls.
“That’s going to be a $20 call spread for which you’ll pay $8.05 or $805, so it’s a max potential profit of $2,000, subtract it from the $805 you pay to leave you roughly $1,200 of max profit.”
Todd Gordon
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