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Bears Drop $2.5M Downside Bet on Zoom Amid Ugly Losing Streak

by | Nov 28, 2022 | Options

Markets are suffering from a bit of holiday hangover with stocks falling Monday over concerns of Chinese labor disputes.

The demonstrations erupted in response to the nation’s latest round of strict COVID-19 lockdown policies and have weighed on stock prices for tech and growth names…

The sour sentiment comes at a bad time for our old friends Cathie Wood and Zoom, the top holding in her ARK Innovation ETF (NYSEArca: ARKK).

Shares of the video networking platform plunged as much as 4.8% from its previous closing price, marking its ninth straight day of losses.

The streak is the worst stretch for the company since May 2021, with shares down around 16% so far for November.

Zoom Chart (Blitz Daily With Lance Ippolito)

Wondering what those little arrows mean and how they can help improve your trading? Get the details here!

And while I’m avoiding Zoom and Cathie Wood like the plague, the prolonged losing streak is catching the attention of bearish traders Monday.

About 30 minutes into the open, my scanners picked up one big-money trader loading up on more than 2,000 contracts of the Mar. 17, 2023 expiration, $80 strike puts for around $2.5 million in premium!

And that’s not the only long-dated flow we’re seeing… 

  • Array Technologies Inc. (Nasdaq: ARRY): April 21, 2023, $25 CALL.
  • GameStop Corp. (NYSE: GME): Dec. 16, $26 PUT.
  • Zoom Video Communications Inc. (Nasdaq: ZM): March. 17, 2023, $80 PUT.

Check out my short video as I break down the day’s most unusual options order flow in no time flat!

P.S. Options Activity Rockets Higher While Investors Sell Off Stocks

When it comes to investing, there really isn’t anything worth buying at the moment…

As much as everyone is hoping for a rosy market, it ain’t happening yet…

And how could it? Everyone and their brother is SELLING stocks…

The Wall Streeters, the politicians and corporate elites continue to dump shares like there is NO TOMORROW.

On the other hand, the options market has never seen so much action!That’s why I’m going LIVE at 1 p.m. ET on Wednesday, Nov. 30, to host my Unusual Options Training Class

It doesn’t cost a dime to attend and I’ll show you what to look for, how to read it and how to use the information published in the options market to generate your own trade ideas!

Grab Your Spot Now

Blitz Daily With Lance Ippolito

At Weekly Blitz Alerts, we follow the big fish and what they’re buying. And we do that with my proprietary Blitz Scanner, which alerts me to big, institutional order flow through the day. Then we get in on these plays and follow the “smart money.” 

The Blitz Daily with Lance Ippolito is where I go over a few options trades that hit the Blitz Scanner each day, Monday through Thursday. I break down the trades with the sexiest order flow and tell you what could happen with those stocks by the next day’s opening bell.*

If you want in on these explosive options plays, be sure to sign up for Weekly Blitz Alerts! We send entry, profit targets and exits directly to you via text and email alerts.

In the meantime, you can follow me @LanceIppolito on Twitter, Instagram and our YouTube channel for more trading insights and tips. And as always, you can find me right here talking stocks and options trading on WealthPress.com!

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

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