8/20/24 :: VROCKSTAR :: 
ZM
Long print at $59, r/r good
- report tmr/ wednesday. using today's down day to take advantage.
- all in... not my favorite tech stock, management or product but let's just think logically.
- net cash by a ton (40% of the enterprise value)
- cash generative (we can sort out how to grade stock options which i think they're doing wrong but again high level strokes here)
- net cash adj. PE on stock price of 7x, fcf yield either 5% (if you take out stock comp) or 10% if you leave it in. good.
- products are becoming more ai-forward. they're inching. the experience is still best in class even though it's a shame there's been very very (and very) little innovation in video calling. it's still better than teams and google has... well... idk... meet is an awful product.
- so all in. the options chain tells me ppl r only willing to rent upside beyond 65 and require a hefty sum to forego 60-63 territory. puts are cheap too which is telling.
- i'd guess the market is baking in a 5-10% move up. downside should be somewhat bid b/c of the reasons above. i'd also probably be a dip buyer.
so i'm a small 50 bps position into the print. not wed to it. but the r/r looks favorable all else equal.
what do u think?
V
ZMLong print at $59, r/r good
- report tmr/ wednesday. using today's down day to take advantage.
- all in... not my favorite tech stock, management or product but let's just think logically.
- net cash by a ton (40% of the enterprise value)
- cash generative (we can sort out how to grade stock options which i think they're doing wrong but again high level strokes here)
- net cash adj. PE on stock price of 7x, fcf yield either 5% (if you take out stock comp) or 10% if you leave it in. good.
- products are becoming more ai-forward. they're inching. the experience is still best in class even though it's a shame there's been very very (and very) little innovation in video calling. it's still better than teams and google has... well... idk... meet is an awful product.
- so all in. the options chain tells me ppl r only willing to rent upside beyond 65 and require a hefty sum to forego 60-63 territory. puts are cheap too which is telling.
- i'd guess the market is baking in a 5-10% move up. downside should be somewhat bid b/c of the reasons above. i'd also probably be a dip buyer.
so i'm a small 50 bps position into the print. not wed to it. but the r/r looks favorable all else equal.
what do u think?
V
Nota
nice.selling some weekly C's over 64 for a buck to lock in some upside without selling outright just here.
enjoy
V
PS - nice call out by my friend on having me take a look here.
Dagangan ditutup: sasaran tercapai
stock now >$65covered the calls.
sold the stock.
possibly more to go but i'm happy w/ the return. W is a W.
looking for the next earnings setup. lmk if you spot one and i'm happy to take a look.
have a good day friends
V
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.