Best Options Strategy for ZS
Looking for the best options strategy for Zscaler (ZS)? There is no single answer — the right play depends on your outlook, your risk tolerance and current implied volatility. Below, our free engine shows the highest-scoring defined-risk strategy on the live ZS option chain right now, and a simple map from your view on ZS to the strategy that fits it. Model any of them in the calculator before you trade.
About ZS
Zscaler (ZS) is a major company in cloud security. Options traders on ZS tend to watch ARR growth, billings and earnings, since these can drive large moves in the share price.
ZS for options traders
Zscaler is a pure-play zero-trust cloud security company, and its high-growth, high-expectation profile makes it one of the more volatile names in cybersecurity for options traders. Implied volatility is structurally elevated — often among the highest in enterprise software — because the stock is priced on ambitious forward expectations, making it acutely sensitive to billings trends, remaining performance obligation (RPO) shifts, federal contract news, and macro-driven multiple compression in high-duration growth stocks.
Earnings are the dominant catalyst, with post-announcement moves frequently reaching double digits in either direction. Options liquidity is decent across the major expirations, though the strike ladder is thinner than mega-cap peers. Structurally high IV attracts premium sellers between events — covered calls and short puts are common income tools — while around earnings, long straddles and strangles suit traders expecting a large but uncertain move, and vertical spreads offer bulls or bears a defined-risk directional position.
Today's top-scoring strategy for ZS
Our engine ranks defined-risk strategies on the live ZS chain by probability of profit and risk/reward, then surfaces the best-scoring one. It is an educational illustration, not advice.
| Action | Qty | Type | Strike | Premium |
|---|---|---|---|---|
| Sell | 1× | CALL | $205 | $3.95 |
| Buy | 1× | CALL | $235 | $0.37 |
Simulation
Forward simulation of 6,000 lognormal price paths to expiration — not a historical backtest.
Strategy analysis
Greeks vs price
Price × volatility (today)
| −30% | −15% | IV | +15% | +30% | |
|---|---|---|---|---|---|
| $231 | −$1,611 | −$1,518 | −$1,444 | −$1,383 | −$1,332 |
| $222 | −$1,190 | −$1,159 | −$1,133 | −$1,109 | −$1,088 |
| $213 | −$746 | −$784 | −$810 | −$826 | −$836 |
| $204 | −$338 | −$430 | −$498 | −$549 | −$587 |
| $194 | −$20 | −$130 | −$221 | −$295 | −$354 |
| $185 | $187 | $92 | $1 | −$79 | −$148 |
| $176 | $296 | $233 | $162 | $90 | $22 |
| $167 | $341 | $309 | $263 | $209 | $153 |
| $157 | $354 | $343 | $319 | $285 | $244 |
| $148 | $358 | $354 | $345 | $327 | $302 |
| $139 | $358 | $357 | $354 | $347 | $334 |
Illustrative example at ZS's latest available price, computed with the same engine as the tool. Live option fills and the real IV skew refresh during US market hours.
Implied volatility
ZS is currently trading with high implied volatility, which makes its options expensive — and attractive to sell. On the options we scanned that was around 55% implied volatility, and higher implied volatility means richer premiums and wider expected moves.
Options on ZS currently price in about 55% implied volatility, versus roughly 50% the stock has actually realised over the past month. The two are roughly in line, so neither buying nor selling premium has a clear volatility edge here.
ZS's IV Rank is 0/100: implied volatility sits 0% of the way between its 24-day low (55%) and high (75%), and is above 0% of recorded days. Premium is historically cheap, which favours net-debit strategies like long options and debit spreads.
Off that volatility, the options market is pricing a move of about ±$27.82 (±15%) in ZS by 2026-09-11 — a range of roughly $157 to $213. Strikes inside that band hold most of the premium and see most of the action.
Across strikes, downside puts on ZS trade at a higher implied volatility than upside calls — the market is paying up for crash protection. That skew favours selling put spreads or buying calls over symmetric trades.
ZS insider trading activity (SEC Form 4)
Open-market insider transactions at ZS over roughly the last six months, from SEC Form 4 filings. Open-market buys are the rarer, more telling signal — routine selling under pre-arranged plans is common, so read a net-selling figure with that in mind.
| Insider | Action | Shares | Value | Date |
|---|---|---|---|---|
| RUBIN KEVIN | Sell | 142 | $21K | 2026-07-27 |
| RUBIN KEVIN | Sell | 118 | $17K | 2026-07-27 |
| RUBIN KEVIN | Sell | 96 | $14K | 2026-07-27 |
| RUBIN KEVIN | Sell | 75 | $11K | 2026-07-27 |
| RUBIN KEVIN | Sell | 72 | $10K | 2026-07-27 |
| Schlossman Robert | Sell | 122 | $18K | 2026-07-06 |
Source: SEC Form 4 filings via Finnhub. Open-market purchases (P) and sales (S) only — grants, option exercises, gifts and tax withholding are excluded. Informational context, not investment advice.
Earnings & IV crush
ZS's next earnings report is due around September 3, 2026. Options that expire after it price in a binary move, so their implied volatility is elevated and usually collapses right after the announcement — an "IV crush". If your expiration falls before this date, the trade sidesteps the event.
With earnings roughly 20 days out, ZS's 55% implied volatility is inflated by event premium — and it usually collapses the moment results drop ("IV crush"). That rewards defined-risk premium sellers when the move stays muted, and punishes option buyers who paid the inflated price. Keep size small and risk defined through the report.
Key figures
- Market cap
- $26.1B
- Beta (vs market)
- 0.92
- 52-week range
- $114.63–$336.99 (32% up the range)
- Short interest
- 7.6% of float · 2.2 days to cover
How to choose an options strategy for ZS
Start with your outlook on ZS, then match it to a defined-risk structure. Here are the most common choices and when each makes sense:
Bullish
Buy a call for leverage with capped risk, or a bull call spread to lower the cost and breakeven when you have a target price.
Long Call → Bull Call Spread →Bearish
Buy a put to profit from a decline with defined risk, or a bear put spread to cheapen the trade when you expect a measured move down.
Long Put → Bear Put Spread →Neutral
Sell an iron condor to collect premium while ZS stays between two strikes, or write a covered call against shares you already own.
Iron Condor → Covered Call →⧉ Embed this free calculator on your site →
How we pick the best strategy
For each ticker we pull the live option chain, build every supported strategy around the at-the-money strikes, and score them on probability of profit, risk/reward and capital efficiency — favouring defined-risk structures where the maximum loss is known up front. Methodology →
Open ZS in the free calculator →
Frequently asked questions
What is the best options strategy for ZS?
It depends on your outlook. Bullish traders often use a long call or bull call spread on ZS; bearish traders a long put or bear put spread; neutral traders an iron condor or covered call. Our live scan above shows the current highest-scoring defined-risk play.
Are ZS options liquid enough to trade?
Zscaler (ZS) is among the most actively-traded US options, which usually means tight bid/ask spreads and plenty of strikes and expirations — though you should always check the open interest and spread on the exact contract.
How much money do I need to trade ZS options?
Buying a single ZS call or put can cost as little as the premium (often one to a few hundred dollars), while income strategies like a cash-secured put need enough capital to buy 100 shares if assigned.
Is this financial advice?
No. Everything here is educational and uses delayed, third-party data. It is not a recommendation to trade ZS or any security. Do your own research.
What does Zscaler do?
Zscaler (ZS) operates in the Software - Infrastructure industry. The "About Zscaler" section above gives a fuller picture of what the company does and how it earns money.
Does Zscaler pay a dividend?
We don't show a confirmed dividend yield for Zscaler here, so treat it as uncertain: before writing calls, check its current dividend and ex-dividend date with your broker — an approaching ex-dividend date can trigger early assignment on in-the-money short calls.
When does Zscaler next report earnings?
Zscaler's next earnings are expected around September 3, 2026. Implied volatility usually climbs into the report and drops sharply afterwards (IV crush) — important for any options position held over the date.
Price trend
Tickers related to ZS
Comparing ZS with similar names can help you choose the best options strategy:
Company information
- Headquarters
- 120 Holger Way, San Jose, CA, 95134, United States
- Industry
- Software - Infrastructure
- Employees
- 7,923
- CEO
- Mr. Jagtar Singh Chaudhry
- Phone
- 408 533 0288
- Website
- www.zscaler.com
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