Stock / Symbol: Zscaller / ZS
Option Strategy: Double Calendar
Trade entry date / price : 03 Dec 2019 / $51.75
Price at this post: $48.52
Reasoning: While ZS is down significantly following its earnings announcement yesterday, it's still not enough of a move to make the trade profitable. We're going try to close out the trade here for a small loss.
Trade Details:
STC 1 ZS 13Dec19 60 call
STC 1 ZS 13Dec19 44 put
BTC 1 ZS 06Dec19 60 call
BTC 1 ZS 06Dec19 44 put
For a min net credit of $0.50 per contract (GTC order, limit order). The mid is currently at a credit of $0.32.
Analysis:
Max Risk: $60
Max Reward: $75 or 125% with ZS trading at either $44 or $60 by Dec 6th
Profit Range: ZS between $41 - $47.50 and $56.10 - $64.45 by Dec 6th
Suggested Stop: $42 and $62
Profit / Loss upon fill: ($10) or -16.7% (pre-commissions)
Estimated Commission (round trip): $12
