July 16, 2020 - MDT Alert (ZEN)

I would like to make a suggestion on a debit spread and the stock is Zendesk, Inc. (ZEN).

ZEN is trading around $88.15 as I write this.

My suggestion is to trade the August monthly options that expire on August 21st.

This gives the stock about two weeks to make a move.

Here is how you open the position:

Buy to Open August 21st - $87.50 Call for $6.10

Sell to Open August 21st - $92.50 Call for $4.00

The net debit will be $2.10 per spread.

Based on the tracking portfolio, I suggest you limit the trade to a 6 lot or 1.2% of the portfolio.

The maximum gain on a six lot would be $1,450.

/by

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