Stocks

Examining Recent Options Activity for Zoom Video Communications (ZM)

Published November 27, 2024

Recently, a noticeable trend has emerged among wealthy investors, who have shown a bullish interest in Zoom Video Communications (ZM). This observation is significant and should not be overlooked by retail traders.

Our analysis has revealed unusual options activity related to ZM, which has been tracked through publicly accessible options history.

It remains unclear whether these trades are made by institutional investors or affluent individuals, but the magnitude of these transactions often indicates that important developments may be on the horizon.

Today, our options scanner identified eight unusual options trades involving Zoom Video Communications. Such activity is not typical and could suggest that significant movements in ZM's stock price may be forthcoming.

The sentiments of these high-value traders are fairly balanced, with around 50% taking a bullish position and 50% adopting a bearish stance. Among the noteworthy options we uncovered, there were two put options valued at approximately $54,701 and six call options totaling around $254,240.

Insights into Expected Price Movements

Analyzing the trading volumes and open interest in these options provides insight into expected price movements for Zoom Video Communications. Data suggests that market activity is concentrated within a price range of $75 to $100 over the past three months.

Volume and Open Interest Analysis

Understanding volume and open interest is crucial in trading options. This information helps gauge the liquidity and interest level for specific strike prices related to Zoom Video Communications. Below is an overview of the volume and open interest concerning both calls and puts for notable options trades within the $75 to $100 strike price range over the past 30 days.

Recent Options Activity for Zoom Video Communications

Key Unusual Options Trades Detected:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
ZM CALL SWEEP BULLISH 02/21/25 $2.56 $2.48 $2.48 $92.50 $55.8K 409 1.1K
ZM CALL TRADE BEARISH 01/16/26 $12.55 $12.35 $12.35 $90.00 $49.4K 1.6K 48
ZM CALL SWEEP BEARISH 03/21/25 $8.45 $8.30 $8.30 $82.50 $44.8K 158 54
ZM CALL TRADE BULLISH 06/18/26 $13.70 $13.45 $13.70 $92.50 $41.1K 313 97
ZM CALL TRADE BULLISH 05/16/25 $3.45 $3.40 $3.45 $100.00 $33.1K 944 490

About Zoom Video Communications

Founded in 2011 and headquartered in San Jose, California, Zoom Video Communications is known for its comprehensive communications platform that facilitates video, voice, chat, and content sharing among users. This cloud-native service allows seamless face-to-face interactions across various devices and locations, catering to businesses of every size worldwide.

Current Status of Zoom Video Communications

  • The current trading volume for ZM stands at 3,924,357, with the stock experiencing a 2.46% increase, reaching a price of $85.46.
  • Analysis of the Relative Strength Index (RSI) suggests that the stock might be nearing an overbought condition.
  • Zoom's next earnings report is anticipated in 89 days.

Expert Analysis on Zoom Video Communications

In the past month, five analysts have released stock ratings for Zoom Video Communications, noting an average target price of $93.4.

Exploring options trading strategies can potentially yield high returns.

One seasoned options trader claims to have a simple one-line chart technique that helps achieve a remarkable 27% profit in 20 days on average. For those interested, further information is available.

Here are some insights from various analysts:

  • An analyst from Benchmark has reaffirmed a Buy rating with a price target set at $97.
  • Piper Sandler maintains a Neutral rating, setting a target price of $89.
  • B of A Securities continues with a Neutral outlook, aiming for a $90 target price.
  • Mizuho holds an Outperform rating with a price target of $105.
  • Morgan Stanley retains an Equal-Weight rating, targeting a price of $86.

Engaging in options trading carries risks but can also lead to lucrative opportunities. Successful traders often mitigate these risks by remaining educated, strategically adjusting their trades, and staying aware of market trends. For real-time updates on Zoom Video Communications options trades, various tools are available to assist traders.

investors, options, trading, Zoom, bullish