Trade of the Week: Zoom | Investors Alley

Trade of the Week: Zoom

April 28, 2020 6:15 am by Jay Soloff

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One of the primary beneficiaries to the stay-at-home revolution brought on by COVID-19 is the video communication industry. In particular, Zoom Video Communication (ZM) has been on a tear in recent weeks as more and more people use the product for meetings, discussions, and chats. ZM was trading at new highs when Facebook (FB) announced it would be offering a competing product. On the news, ZM stock dropped sharply while FB shares moved higher. If you want to take a downside position in ZM, you may want to consider put spreads because single puts are expensive.

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