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Big Loser Alert: Trading today’s -10.8% move in ZSCALER INC. COMMON STOCK

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Quantchabot has detected a promising Short Risk Reversal trade opportunity for ZSCALER INC. COMMON STOCK (ZS) for the 18-Feb-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

ZS was recently trading at $279.62 and has an implied volatility of 57.05% for this period. Based on an analysis of the options available for ZS expiring on 18-Feb-2022, there is a 34.14% likelihood that the underlying will close within the analyzed range of $216.19-$279.68 at expiration. In this scenario, the average linear return for the trade would be 63.23%.

Big -10.76% Change: After closing the last trading session at $313.35, ZSCALER INC. COMMON STOCK opened today at $301.94 and has reached a low of $279.00.

Trade approach: A movement as big as -10.76% is a significantly bearish indicator, so this trade is designed to be profitable if ZS maintains its current direction and does not revert back to pricing on the bullish side of $279.62 on 18-Feb-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if ZSCALER INC. COMMON STOCK closes at or below $286.75 on 18-Feb-2022. Based on our risk-neutral analysis, there is a 53.86% 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.

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