Zscaler lifted its full-year forecast
Zscaler Inc (NASDAQ:ZS) is soaring today, up 22.5% at $109.60 at last glance, after the cloud security name raised its full-year forecast and announced better-than-expected preliminary fiscal third-quarter results.
Options traders are responding, with 50,000 calls and 28,000 puts exchanged so far, which is already 3.2 times the average daily volume. The weekly 5/12 110-strike call is the most popular, followed by the monthly May 110 call, with new positions being opened at both.
That $110 level appears to be where the stock runs out of steam, as it is home to ZS' mid-April peak and acting as a line of pressure today. Today's bull gap does have the equity breaking above its 40-day moving average, however. Year-to-date, Zscaler stock is down 2.8%.
It's also worth noting that short interest represents 8.7% of the stock's available float. It would take roughly three days for shorts to cover, at ZS' average pace of trading.