Zscaler Options Volume Surges, Dominated by Bullish Call Contracts

Trading activity in Zscaler, Inc. (ZS) options surged on Tuesday, with total volume reaching 39,437 contracts by 12:30 p.m. New York time. The data reveals a significant skew towards bullish bets, as call options accounted for the vast majority of the volume.

Details of the Trading Activity

According to exchange data compiled by Bloomberg, call options, which are typically used to bet on a stock's price rising, made up 34,601 of the contracts traded. In contrast, put options, which are generally bets on a price decline, totaled just 4,836 contracts. This indicates that call volume was more than seven times that of put volume, suggesting strong positive sentiment among options traders.

The heightened options activity coincided with a notable rally in the company's shares, which were trading up 8.13% during the session.

Notable Contracts

A few specific contracts drew exceptionally high volume, with trading far exceeding the existing open interest—a metric that indicates the number of contracts held by traders from previous sessions. This pattern suggests that a large number of new positions were being initiated on Tuesday.

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Key contracts included:

• The July 17, 2026 $157.50 call was the most active, with 6,228 contracts changing hands against a prior open interest of only 118.
• A call spread involving the February 19, 2027 $115 and $120 calls accounted for a combined 3,884 contracts, compared to a collective open interest of just three.
• The August 21, 2026 $200 call saw 3,760 contracts traded versus an open interest of 2,139.
• The August 21, 2026 $175 call had volume of 2,121 contracts against an open interest of 745.

What This Means for Investors

An unusual spike in options volume, particularly when heavily weighted toward calls and significantly surpassing open interest, is often interpreted by market analysts as a sign of heightened institutional or retail speculation. While not a definitive predictor of future performance, such activity indicates that traders are positioning for a potential upward move in the underlying stock's price in the near to medium term.