The equity is brushing off a quarterly win and slew of bull notes
Zscaler Inc (NASDAQ:ZS) stock is 4.8% lower to trade at $198.53 at last check, after the cloud company's dismal forecast for the fiscal second quarter overshadowed a fiscal first-quarter earnings and revenue beat. The equity is also also brushing off seven price-target hikes, including one from Oppenheimer to $250 from $230.
Shares are slipping back below the $200 region, which acted as a resistance level in July, August, and October. Cooling from an attempt to rally toward its highest level since March, Zscaler stock is now testing support at its 40-day moving average. So far this year, ZS has shed 11%.
A sentiment shift in the options pits could pressure ZS lower. This is per the equity's 50-day call/put volume ratio of 1.96 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits in the 82nd percentile of annual readings.
Drilling down to today's options activity, 19,000 calls and 15,000 puts have traded hands, which is 15 times the intraday average volume. The most active contract is the weekly 12/6 210-strike call, where new positions are being opened.