Zscaler Unusual Options Activity

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

And retail traders should know.

We noticed this today when the trades 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.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 58 uncommon options trades for Zscaler.

This isn't normal.

The overall sentiment of these big-money traders is split between 18% bullish and 81%, bearish.

Out of all of the special options we uncovered, 26 are puts, for a total amount of $1,668,471, and 32 are calls, for a total amount of $2,408,586.

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 $125.0 to $350.0 for Zscaler during the past quarter.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Zscaler stands at 556.62, with a total volume reaching 5,427.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Zscaler, situated within the strike price corridor from $125.0 to $350.0, throughout the last 30 days.

Zscaler Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

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.

Following our analysis of the options activities associated with Zscaler, we pivot to a closer look at the company's own performance.

Where Is Zscaler Standing Right Now?

• Trading volume stands at 4,545,192, with ZS's price down by -14.36%, positioned at $213.27.
• RSI indicators show the stock to be may be approaching oversold.
• Earnings announcement expected in 8 days.

Professional Analyst Ratings for Zscaler

In the last month, 5 experts released ratings on this stock with an average target price of $241.8.

• Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for Zscaler, targeting a price of $259.
• An analyst from Rosenblatt downgraded its action to Buy with a price target of $245.
• An analyst from Cantor Fitzgerald has revised its rating downward to Neutral, adjusting the price target to $250.
• An analyst from JMP Securities has decided to maintain their Market Outperform rating on Zscaler, which currently sits at a price target of $270.
• In a cautious move, an analyst from Cantor Fitzgerald downgraded its rating to Neutral, setting a price target of $185.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Zscaler options trades with real-time alerts from Benzinga Pro.