Check Out What Whales Are Doing With Zscaler

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 12 uncommon options trades for Zscaler.

This isn't normal.

The overall sentiment of these big-money traders is split between 8% bullish and 91%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $255,582, and 7 are calls, for a total amount of $561,740.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $100.0 to $195.0 for Zscaler during the past quarter.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Zscaler's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Zscaler's whale trades within a strike price range from $100.0 to $195.0 in the last 30 days.

Zscaler 30-Day Option Volume & Interest Snapshot

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

• Trading volume stands at 600,874, with ZS's price down by -0.59%, positioned at $185.99.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 12 days.

What The Experts Say On Zscaler

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $210.0.

• Maintaining their stance, an analyst from JP Morgan continues to hold a Neutral rating for Zscaler, targeting a price of $190.
• An analyst from JMP Securities downgraded its action to Market Outperform with a price target of $225.
• Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Zscaler, targeting a price of $205.
• An analyst from Jefferies has elevated its stance to Buy, setting a new price target at $225.
• An analyst from Stifel has decided to maintain their Buy rating on Zscaler, which currently sits at a price target of $205.

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.