Zoom Still Reaching New Highs

July 23rd, 2020 Zoom Still Reaching New Highs Dear Reader, Yesterday, we looked at a Daily Price Chart of Astrazeneca PLC, noting that the stock's 50-Day EMA is trading above the 100-Day EMA. For today's Trade of the Day e-letter we will be looking at a stock that we previously highlighted in this newsletter and see how the stock has performed since. For today's Trade of the Day we will be looking at a daily price chart for Zoom Video Communications, Inc. stock symbol: ZM. Before breaking down ZM's daily chart let's first review what products and services this company offers. Zoom Video Communications, Inc. provides a video-first communications platform that delivers changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video experiences and connects users across various devices and locations in a single meeting. Below is a daily price chart for Zoom Video Communications, Inc. In the March 25th edition for Trade of the Day, Zoom Communications, Inc. was featured as the highlighted stock. In the chart below, the date when ZM was featured has been circled. Now, let's begin to break down the daily chart for ZM stock. When ZM was originally featured in this newsletter the stock was trading at 135.18. As the chart shows, ZM stock is now trading at 261.18 per share. When we featured ZM, our original price target for ZM stock was 148.70 per share. This price target has been well surpassed. Our updated price target for ZM is 280.75 per share. Just like we noted on March 25th, the ZM stock price is continuing to hit a series of higher highs and higher lows. Due to this, ZM stock is still signaling a strong bullish trend. Small Accounts Can Lead to Big Gains... Market guru and 10-time Trading Champion Chuck Hughes started out with a small $4,600 trading account. He took that $4,600 and made over $460,000 in profits in just two years. Now, he's willing to share his simple and successful method. Click here to learn more . How well has this trade performed? Since we featured ZM in the Trade of the Day, the stock has gone on to see an increase of 93.2%. On March 25th we highlighted a debit spread trade for ZM which is shown below in the Optioneering Calculator screenshot. When this trade was initiated on March 25th 2020, the cost of the debit spread was 2.15 points. At market close on 7/22/20 this debit spread's value has increased to 4.85 points. This means that since March 25th, this trade has gone on to see a 125.6% profit. This ZM debit spread is currently only 0.15 points from reaching the trade's full profit potential which was calculated based on ZM's stock price at option expiration. If a spread reaches its full profit potential before option expiration, we normally will close out the spread and roll over our profits into another spread trade opportunity. Reducing Risk and Compounding Returns In this example, if we roll over our $270 profit into a new spread with a $250 cost, we have no cost basis for the new spread and eliminate all risk with the new spread. We are then playing with the 'house's money'. Rolling over our option profits into a new option position before option expiration when the underlying stock is still on a 'buy' signal is one of the Optioneering Trade Management Guidelines. Rolling over profits allows us to reduce the cost basis and risk of the new option and compound our returns. Many times, we can reduce the cost basis of the new option to zero and eliminate risk. In this ZM spread example, ZM stock could drop 52.12% or 136.14 points from the current price and the spread would still realize its full 132.6% profit potential. Option spread trades can result in a higher percentage of winning trades compared to a directional option trade if you can profit when the underlying stock/ETF is up, down or flat. A higher percentage of winning trades can give you the discipline needed to become a successful trader. The Hughes Optioneering Team is here to help you identify winning trades just like this one. Trade High Priced Stocks for $350 With Less Risk One of the big advantages to trading option spreads is that spreads allow you to trade high price stocks like Amazon, Google, Netflix or Apple for as little as $350. With an option spread you can control 100 shares of Apple for $350. If you were to purchase 100 shares of Apple at current prices it would cost about $39,000. With the stock purchase you are risking $39,000 but with an Apple option spread that costs $350 your maximum risk is $350 so your dollar risk is lower with option spreads compared to stock purchases. Get Trades Sent from Chuck! You can start receiving hand-picked trades from Chuck today. Chuck is offering special pricing for his Weekly Option Alert Trading Service for Trade of the Day subscribers. Just call Brad at 1-866-661-5664 or 1-310-647-5664 to join and use the code "Optioneering VIP" to receive special pricing! Wishing You the Best in Investing Success, Chuck Hughes Editor, Trade of The Day Have any questions? Email us at dailytrade@chuckstod.com Welcome Market Turbulence with This Secret Chuck Hughes doesn't shy away from market volatility, he welcomes it. Chuck's used to turbulence. His years as a pilot gave him the the ability to weather even the worst storms. He has a tested and proven secret strategy that thrives during turbulent market conditions. For more information click here. Unsubscribe Investment Software Inc 22C New Leicester Hwy #117 © 2020 Tradewins Publishing. All rights reserved. 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Hypothetical performance results have many inherent limitations, some of which are described below. Also, the hypothetical results do not include the costs of subscriptions, commissions, or other fees. Because the trades underlying these examples have not actually been executed, the results may understate or overstate the impact of certain market factors, such as lack of liquidity. Legacy makes no representations or warranties that any account will or is likely to achieve profits similar to those shown. No representation is being made that you will achieve profits or the same results as any person providing a testimonial. No representation is being made that any person providing a testimonial is likely to continue to experience profitable trading after the date on which the testimonial was provided, and in fact the person providing the testimonial may have subsequently experienced losses. The cost basis for some of the options in a portfolio may be reduced by rolling over profits at option expiration which is one of the Hughes Optioneering Trade Management Rules. Some income figures presented represent the total amount of option premium collected during the referenced period. Actual profits were less. Open trade profit results may have increased or decreased when the trades were closed out. Chuck Hughes' experiences are not typical. Chuck Hughes is an experienced investor and your results will vary depending on risk tolerance, amount of risk capital utilized, size of trading position, willingness to follow the rules and other factors. _