What You Could Have Expected From Zoom's Earning Report?

NASDAQ:ZM   Zoom Video Communications, Inc
It can be tough sometimes to play ER, but I commend those who have the nerves to consistently play ER's. We know prices can go either way when dealing with earnings .

A company can beat on ER and gap down, a company can miss on earnings & gap up. Sometimes it feels like playing the lottery with ER plays.

There are some things you can notate before you play an earnings report.

Like how has the asset been performing leading into earnings? Has it been bullish? Has it been bearish?

What's the overall sentiment surrounding the asset?

How has the asset been performing against the market?

What is the market doing? Does the overall market seem bearish or bullish . Does the particular asset move with or against the market?

Don't just assume what the asset will do regardless of what the chatter is.

Leading into it's' ER, Zoom has been in a continued downtrend like a plethora of other stocks. Seeing this, along with price action leading into ER. I could expect for Zoom to pop after hours, Why?

One reason is that it has been in a steady decline. There were "trapped bulls" at the 107 area & price made a double bottom from the May 20th trading session into the May 23rd trading session around $85.

Seeing that, along with price being in a steady decline & the chatter of a earnings beat. You could have went long with 95-107 calls with a SL at 85(even though SL's are no good post-market). Nevertheless, Zoom pushed to 107 after hours before fading. Again, ER plays are tough, but there is a method to the madness as well. If you played Zoom's ER, I hope you were on the right side of it.

Catch yall on the next post.....Peaaaacccceeeee!!!!


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.