Behind the Scenes of Zscaler's Latest Options Trends

Author: Benzinga Insights | June 27, 2024 12:03pm

Investors with a lot of money to spend have taken a bearish stance on Zscaler (NASDAQ:ZS).

And retail traders should know.

We noticed this today when the positions showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with ZS, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 15 options trades for Zscaler.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 46%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $180,000, and 14, calls, for a total amount of $476,120.

Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $165.0 to $250.0 for Zscaler during the past quarter.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Zscaler options trades today is 681.18 with a total volume of 736.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Zscaler's big money trades within a strike price range of $165.0 to $250.0 over the last 30 days.

Zscaler Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
ZS	PUT	TRADE	BEARISH	08/16/24	$3.65	$3.5	$3.6	$175.00	$180.0K	699	6
ZS	CALL	TRADE	BULLISH	06/20/25	$14.75	$14.25	$14.55	$250.00	$48.0K	2.0K	1
ZS	CALL	SWEEP	NEUTRAL	08/16/24	$11.95	$11.6	$11.76	$180.00	$47.0K	828	4
ZS	CALL	TRADE	BULLISH	09/20/24	$9.2	$8.7	$9.1	$200.00	$44.5K	1.7K	56
ZS	CALL	TRADE	BEARISH	09/20/24	$11.15	$10.85	$10.85	$200.00	$43.4K	1.7K	149

About Zscaler

Zscaler is a software-as-a-service, or SaaS, firm focusing on providing cloud-native cybersecurity solutions to primarily enterprise customers. Zscaler's offerings can be broadly partitioned into Zscaler Internet Access, which provides secure access to external applications, and Zscaler Private Access, which provides secure access to internal applications. The firm is headquartered in San Jose, California, and went public in 2018.

In light of the recent options history for Zscaler, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of Zscaler

• Currently trading with a volume of 1,046,280, the ZS's price is up by 0.18%, now at $179.25.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 68 days.

What Analysts Are Saying About Zscaler

5 market experts have recently issued ratings for this stock, with a consensus target price of $230.0.

• An analyst from Cantor Fitzgerald has decided to maintain their Neutral rating on Zscaler, which currently sits at a price target of $200.
• Maintaining their stance, an analyst from UBS continues to hold a Buy rating for Zscaler, targeting a price of $270.
• Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on Zscaler with a target price of $240.
• An analyst from BTIG persists with their Buy rating on Zscaler, maintaining a target price of $220.
• Maintaining their stance, an analyst from Canaccord Genuity continues to hold a Buy rating for Zscaler, targeting a price of $220.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Zscaler, Benzinga Pro gives you real-time options trades alerts.

Posted In: ZS