DailyPlay – Trade Adjustment (ZM) & Closing Trade (SPY) – May 20, 2025

Closing Trade

• SPY – 87% loss: Buy to Close 2 Contracts (or 100% of your Contracts) June 20 $570/$595 Call Vertical Spreads @$18.83 Debit. DailyPlay Portfolio: By Closing both Contracts, we will be paying $3,766. We initially opened these 2 Contracts on May 5 @ $10.04 Credit. Our loss on this trade, therefore, is $879 per Contract.

ZM Bullish Trade Adjustment Signal

Investment Rationale

We continue our bullish outlook on ZM. We currently hold the ZM Jun 13, 2025, 80 Strike Call in the Daily Play Portfolio. Despite trading at a notable discount to its software peers, Zoom stands out for its operational efficiency and disciplined cost management. ZM has recently broken out of a multi-month consolidation range. The stock is now trading above both its 50-day and 200-day moving averages, reinforcing the bullish momentum. With the upcoming earnings release on Wednesday, May 21, after the close, we have decided to adjust the position into a Bull Call Vertical spread by selling the ZM Jun 13, 2025, 90 Strike Call.

Position after the adjustment – Bull Call Vertical Spread:

• Long 3 ZM Jun 13, 2025, $80 Strike Call
• Short 3 ZM Jun 13, 2025, $90 Strike Call

ZM – Daily

Trade Details

Strategy Details

Strategy: Selling a Call – Creating a Long Call Vertical Spread

Direction: Resulting trade is a Bullish Debit Spread

Details: Sell to Open 3 Contracts ZM June 13 $90 Calls @ $1.44 Credit per Contract.

Total Risk: This trade has a maximum risk of $1,377 ($1,809 – 432), calculated as the initial cost basis of the three contracts purchased ($1,809) minus the premium received from the three contracts sold ($432).

Trend Continuation Signal: This is a bullish trade on a stock that is expected to continue higher over the duration of this trade.

1M/6M Trends: Bullish/Bullish

Relative Strength: 8/10

View ZM Trade

Resulting Trade

Entering the Trade

Use the following details to enter the trade on your trading platform. Please note that whenever there is a multi-leg option strategy, it should be entered as a single trade. 

PLEASE NOTE that these prices are based on Monday’s closing prices. Should the underlying move significantly during the pre-market hours, we will likely adjust the strikes and prices to reflect a more accurate trade entry. 

View ZM Trade