025. PIGGISH PLAY - Short Zoom Video Communications (ZM)This is going to be a very interesting day for equity markets. I just tied out one particular set of wave counts across all four major indices (ending diagonals/upward corrections for all), which means that we could see extremely violent selling in all corners of most markets.
Or, we will not.
Doesn't matter all that much because Zoom is tipping over the edge with or without the advent of the most blatant confirmation in global market history.
Yet, I'd bet that most folks will try and buy the obviously-not-a-dip despite all the warning signs. That goes for Zoom and any other stock that "seems" like a good buy over the next few sessions. Silly rabbits, stock buying tricks are for noobs, the greedy noobs, and the visually impaired at this point.
Thus we buy puts ("short," if you will).
See below for the contract specs:
PIG SPECS:
1) BUY at least 4 PUT Contracts with a STRIKE above 300, and EXPIRATION at 01/22/2021; (STRIKE > 300, EXP at 01/22)
2) ENTER PUT Position immediately after the price breaks below 335 intraday. If it passes this level via overnight gap down, I would wait for a 5-10 point pullback upward before entering. If it does not immediately attempt to close this overnight gap, then enter without worry - it's going to get slammed throughout the day for sure.
3) SELL 3 of 4 PUTS (or 75% of larger pos) at the first touch of 295.00 ($/share) and hold the remaining contract for excessive gains. I'd probably recommend a stop at 335.00 ($/share) in case you want to focus on other positions while letting this one chill. You'll be well ITM on the trade overall, even if the last contract expires worthless ) )it won't).
Bear winter is coming, best to have an overvalued Skype knock-off (albeit slightly better) in your back pocket.
- SkypePig
NASDAQ:ZM
TVC:NDX
TVC:SPX
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