ZM

Put Contract Analysis: The $80.00 put contract for ZM has a bid of 70 cents, allowing investors to buy shares at a cost basis of $79.30, which is a 7% discount from the current price of $85.69. There is a 73% chance the contract may expire worthless, offering a potential 0.87% return on cash commitment.

Call Contract Strategy: The $93.00 call contract has a bid of $1.00, enabling investors to sell shares at that price after purchasing at $85.69. If exercised, this could yield a total return of 9.70%, with a 69% chance of the contract expiring worthless, providing a 1.17% additional return.

Volatility Insights: The implied volatility for the put contract is 34%, while the call contract has an implied volatility of 37%. The actual trailing twelve-month volatility is calculated at 32%.

YieldBoost Concept: Both the put and call contracts offer potential YieldBoosts, with the put providing a 6.39% annualized return if it expires worthless, and the call offering an 8.52% annualized return under similar conditions.

Growth Investing Overview: Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to their inherent risks and volatility.

Zoom Communications as a Growth Stock: Zoom Communications (ZM) is highlighted as a recommended growth stock, boasting a favorable Growth Score and a Zacks Rank of #2, indicating strong potential for returns.

Earnings and Cash Flow Growth: Zoom's projected EPS growth of 106.4% this year significantly outpaces the industry average, and its cash flow growth of 15.8% further supports its position as a strong growth candidate.

Positive Earnings Estimate Revisions: Recent upward revisions in Zoom's earnings estimates, along with its solid growth metrics, position the company well for potential outperformance in the market.