What the Options Market Tells Us About Zscaler

Deep-pocketed investors have adopted a bearish approach towards Zscaler ZS, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in ZS usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for Zscaler. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 25% leaning bullish and 75% bearish. Among these notable options, 4 are puts, totaling $152,131, and 4 are calls, amounting to $696,500.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $110.0 and $260.0 for Zscaler, spanning the last three months.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for Zscaler options trades today is 615.17 with a total volume of 1,113.00.

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 $110.0 to $260.0 over the last 30 days.

Zscaler Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

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.

Zscaler's Current Market Status

• Currently trading with a volume of 812,101, the ZS's price is down by -1.06%, now at $196.16.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 86 days.

What The Experts Say On Zscaler

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $194.0.

• Consistent in their evaluation, an analyst from BMO Capital keeps a Outperform rating on Zscaler with a target price of $200.
• Consistent in their evaluation, an analyst from Morgan Stanley keeps a Equal-Weight rating on Zscaler with a target price of $180.
• Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for Zscaler, targeting a price of $205.
• In a cautious move, an analyst from Cantor Fitzgerald downgraded its rating to Neutral, setting a price target of $170.
• Consistent in their evaluation, an analyst from TD Cowen keeps a Outperform rating on Zscaler with a target price of $215.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Zscaler with Benzinga Pro for real-time alerts.