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Hawk’s Nest

Sluggish Former Tech High Flyer Sees Call Buyer into Lows

by | Sep 27, 2022

Zoom (ZM) with 875 March $90 calls bought $7.85 into the new lows under 75 and a name that is very oversold since earnings gap down last month. A longer term buyer looking for a snapback rally off these lows and giving themselves time as the March calls likely lose less premium when IV contracts in a market rally. ZM has alot of resistance but on a squeeze higher can see 85-90 the next few months fairly easily and potentially the open gap above can be filled the next 3-6 months.