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Zoom Video, up 330% this year, could have more room to run, trader says

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Zoom Video, up 330% this year, could have more room to run, trader says

One of the hottest stay-at-home stocks could be set for more upside, said Todd Gordon, managing director at Ascent Wealth Partners. 

Videoconferencing stock Zoom Video has already rallied nearly 330% this year and Gordon is betting a strong technical set-up and fundamental tail winds can propel it higher when it reports earnings on Aug. 31. 

"Zoom has held in extremely well, a little bit of consolidation over the last couple of weeks, but we're pushing higher on the back of news that Facebook in their videoconferencing Portal will actually support Zoom. Facebook is going after sort of the corporate kind of clients in the new work-at-home, stay-at-home environment that really looks like it's going to be with us longer than we imagined," Gordon told CNBC's "Trading Nation" on Thursday. 

Facebook said earlier this week that Zoom would be among the apps available on its Portal device beginning September. Zoom is up 18% for the week. 

That breakout from consolidation should give Zoom more momentum to continue its rally, said Gordon. 

"It's just an unbelievable uptrend here in Zoom and as I've mentioned, we have just recently broken through this bit of consolidation, and we don't see any reason why we should not be able to continue higher, moving up into the $300s and beyond," he said. 

Zoom closed Friday at $289.68 a share. 

Gordon's Ascent Wealth Partners holds Zoom in its portfolio and while the firm does not plan to add to the position, he said there is a way option traders could take advantage of a short-term move into and after the earnings release. He suggests buying the 290 strike call expiring mid-September and selling the 310 call. 

"That's going to be a $20 call spread for which you'll pay $8.05 or $805, so it's a max potential profit of $2,000, subtract it from the $805 you pay would leave you roughly $1,200 of max profit," he said. 

Disclosure: Ascent Wealth Partners holds Zoom. 

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