the article talks about a stock called zoom, which is a video calling company. a while ago, many people thought it was a very good company to invest in, but now not as many people think so. however, the people who wrote the article think that zoom might go up in price again soon. they based this on zoom's good financial health and recent good news about the company's earnings. they made a prediction about the stock's price by buying an option on it, which could make them a lot of money if they're right. this is just one example of stocks they think might do well and are willing to invest in. Read from source...
Trying A Winning Set-Up Again by David Pinsen, Benzinga Contributor, August 23, 2024, refers to the idea of repeating successful stock trading set-ups again, especially for stocks that have beaten on both top and bottom lines, but have declined since, indicating a strong valuation and fundamental health, providing an opportunity for a bullish options trade. However, it must be noted that investing is a personal decision that must consider individual financial goals, risk tolerance, and market conditions. It's essential to be well-informed before making any investment decisions. The article criticizes the concept of 'getting rich quick' or making decisions based on hype and trends, which can lead to poor investment choices. While the information provided in the article can be useful, potential investors should be cautious and carry out their own research before investing.
1. Zoom Video Communications (ZM) - A beaten-down stock with strong fundamentals. A bullish options trade is recommended on this stock. A vertical spread expiring on September 20th, buying the $60 strike calls and selling the $65 strike calls for a net debit of $1.60 is suggested. However, an opportunity to maximize gain was left on the table, resulting in a 113% gain instead of a potential 150% gain. Despite this, Zoom's earnings beat, posting an earnings report that exceeded expectations, boosted the stock's value, leading to a subsequent rise in its stock price. Investors are advised to keep an eye out for potential stocks with similar characteristics for potential bullish trades.
2. Another stock with comparable attributes to Zoom Video Communications was found, though it belongs to a different industry. This stock, while oversold and oversolid with a Chartmill Valuation Rating of at least 7 and a Piotroski F-score of 8 or better, met all the criteria set for a potential bullish options trade. Investors are advised to subscribe to the Portfolio Armor trading Substack for heads-up notifications when trades on such stocks are made.