Zscaler Options Trading Insights for March Expiration

New options for Zscaler Inc (ZS) are available, presenting investors with attractive options to leverage. Investors might consider the put contract at $200 and call at $210, both showing potential returns.

Date: 06-02-2025

AI Rating: 7

Options Trading Activity
Today marks the start of new options trading for Zscaler Inc (ZS), highlighting both put and call contracts that could significantly affect investor strategies. The put contract at the $200 strike price has been identified as particularly interesting for investors, offering a current bid of $11.70. Selling this put allows investors to potentially acquire shares below the current market price, effectively bringing their cost basis down to $188.30. This creates an attractive entry point for those bullish on ZS.

For the call side, the $210 call contract also merits attention. Selling to open this call would provide investors with a premium while obligating them to sell at a $210 price point, which represents a 3% premium over the current stock price of $204.70. Should the contract expire worthless, investors retain their shares and the premium, enhancing their potential return.

Implied vs Actual Volatility
The implied volatility for the put contract stands at 50%, while the call option is slightly higher at 51%. This level of implied volatility may indicate expected fluctuations in the stock price, creating potential opportunities for both risk and reward. In contrast, the actual volatility over the trailing twelve months has been calculated at 44%, suggesting a somewhat stable underlying stock price compared to what the market expects.

Market Implications
The current analytical data shows there is a 59% chance that the put contract could expire worthless, while for the call contract, the odds are slightly lower at 51%. These probabilities, coupled with the potential pursuit of annualized returns (5.85% on the put and 6.06% on the call), underscore Zscaler's attractive investment landscape. Investors need to weigh these options carefully against their market outlook for Zscaler moving forward.

Stocks: ZS