More highlights in store for Zscaler Stock

Software Stock: Zscaler Inc (NASDAQ:ZS) has skyrocketed on the charts since mid-May, when it hit an annual low of $157.03. In fact, security has added a solid 42.8% over the past three months, with consistent support on the 20-day moving average, while long-term support on the 140-day moving average has helped control the bulk. of the relapse of ZS for almost two years. In addition, Zscaler stock just hit an all-time high of $249.71 late last week, and remains within a chipshot of that spike.

In addition to a promising technical lineup on the charts, another bullish signal just started flashing for ZS indicating that this rally is not over yet. Specifically, Zscaler stock just landed on the Schaeffers Senior Quantitative Analyst Rocky Whites list of stocks trading near a 52-week high amid historically low implied volatility (IV). This has historically been a bullish equity combination, with ZS delivering higher returns over the month after 83% of its six signals over the past five years. The stock averaged a population of 7.2% during this period, and a similar move from its current position would easily set it at a new all-time high, just above the $261 level.

The security recently posted a bull note just one day after hitting the aforementioned record high, with BTIG lifting its price target from $253 to $279. However, there is still room for a shift in sentiment to move the stock higher. to steer. Out of 21 in cover, six say still holding. In addition, the stock’s 12-month consensus price target of $246 is a small 1.5% premium from current levels.

A further cut in short-term interest rates could also curb the wind in Zscaler shares. While short yields fell 1.7% in the most recent reporting period, the 6.52 million shares sold short make up a healthy 8.5% of the available float, leaving plenty of room for short squeeze.

An unraveling of pessimism is in order elsewhere. Namely, in the option pits, where Zscaler stocks have a Schaeffer’s put/call open interest ratio (SOIR) of 1.27, which is higher than 79% of the past 12-month readings. This means that short-term options traders have rarely been more biased. Following on from this, Zscaler’s 10-day put/call volume ratio of 1.25 is above 95% of annual values ​​on the International Securities Exchange (ISE), Cboe Options Exchange (CBOE) and NASDAQ OMX PHLX (PHLX), which suggests that long puts are rarely more popular.

As we mentioned earlier, ZS Schaeffer’s Volatility Index (SVI) is currently incredibly low and is in the 3^rd percentile of the 12-month range, making now a perfect time to speculate on the next step higher with options as these traders discount the extremely low volatility expectations. In addition, the Schaeffers Volatility Scorecard (SVS) is at 79 out of a possible 100. This means that Zscaler stocks tend to outperform stated volatility expectations, which is a good thing for buyers.