Quantchabot has detected a promising Bull Call Spread trade opportunity for ZSCALER INC. COMMON STOCK (ZS) for the 19-Aug-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.
ZS was recently trading at $161.50 and has an implied volatility of 68.55% for this period. Based on an analysis of the options available for ZS expiring on 19-Aug-2022, there is a 34.17% likelihood that the underlying will close within the analyzed range of $161.76-$212.42 at expiration. In this scenario, the average linear return for the trade would be 10.62%.
Big 8.31% Change: After closing the last trading session at $149.11, ZSCALER INC. COMMON STOCK opened today at $151.62 and has reached a high of $162.11.
Trade approach: A movement as big as 8.31% is a significantly bullish indicator, so this trade is designed to be profitable if ZS maintains its current direction and does not revert back to pricing on the bearish side of $161.50 on 19-Aug-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.
Upside potential: Using this bullish strategy, the trade would be profitable if ZSCALER INC. COMMON STOCK closes at or above $132.80 on 19-Aug-2022. Based on our risk-neutral analysis, there is a 76.58% likelihood of this return.
Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.
To analyze this trade in depth, please visit the Quantcha Options Search Engine.