Zscaler Options Trading Insights: Analyzing New Contracts

Zscaler Inc (ZS) sees new options trading with potential gains. Investors may consider selling puts for a cost basis discount, with a 58% chance they could expire worthless, and a 5.75% return. Options strategies could influence ZS stock movement positively.

Date: 30-01-2025

AI Rating: 6

Options Trading Influence
New options trading has begun for Zscaler Inc (ZS), specifically with the March 14th expiration contracts. This activity could indicate investor sentiment towards ZS stock. Investors are particularly interested in a put contract at the $200.00 strike price with a bid of $11.50. Selling to open this put contract provides an opportunity to buy shares at a cheaper effective cost of $188.50 (considering the premium). This strategy could attract investors who still want to enter the stock despite current price levels.

In addition, there is a call contract at the $205.00 strike price. If an investor were to buy ZS shares at $202.69 and sell this call, they could potentially earn a total return of 7.90% if the stock is called away at expiration. However, this comes with the risk of missing out on greater upside if the stock price increases significantly.

While neither earnings nor direct financial metrics like EPS, revenue growth, or profit margins were discussed, the options trading dynamics suggest that the market is somewhat bullish. The probability of the put contract expiring worthless is calculated at 58%, indicating market sentiment that ZS will not drop significantly below $200. Moreover, the call options have a 47% chance of expiring worthless, which may indicate bullish expectations.

Conclusion
Overall, while the report does not provide direct financial data regarding EPS, revenue, or net income, the options trading activity reveals investor interests and may suggest an optimistic outlook on Zscaler Inc (ZS) stock performance. Investors looking at these options strategies may find it beneficial when deciding if and how to trade ZS shares.

Stocks: ZS