ZS Trade on May 26, 2021 15:46 from Marius: Tradervue User Stock Trades.

Last trading week of the month with Memorial weekend holiday at tail end. Earnings reports wrapping up but still opportunity being seen along with common developing themes in place.

Fundamental Analysis

Zscaler reported non-GAAP EPS of 0.15 which was double the consensus. Revenue was higher at 59.6% Y/Y to 175.4M. They also issued strong Q4 revenue guidance going forward. They are developing as a strong leader in the cloud space working with large enterprises and business globally.

Quantitative Analysis

Intraday Fundamentals

RVOL 4.02
AVOL 1.96M
ATR 8.63
Short Float 7.47%
Shs Float 77.56M
Inst Own 42.10%
Market Cap 26.50B

Options Statistics + Tape Reading

SI 2.696
IV 43.28%
IVP 8%
P/C 0.686
VWAP 195.342

Mixed order flow data but elevated options order flow with weight on the Call side. This is within correlation of the price action.

Options data stats/notes day prior to catalyst (n/a)

Options Positioning

OI 805
VOL 630
Delta-.01
Theta -.06
Vega .01
Gamma .00
Prob T 2.87%
Prob ITM 1.46%
MMM +/- 7.056
IV Series 52.56%

Conservative positioning due to the price action but within my playbook.

Options data stats/notes day prior to catalyst (n/a)

Technical Analysis

Elevated volume gap-up but more volume on the ASK and daily candle of indecision. IV is also notable decreasing. It did close with notable BID volume into the close but under VWAP.

Notable gap-up and hold above AVWAP from prior to earnings. Notable change of investor/market sentiment on this report inferring from the technicals. 200 is a key resistance level. Gap up above 180 HTF inflection level was standing out + 160 HTF support area. It is currently trading at a high VPOC under the prior mentioned 200 level. Price action is implying consolidation but if 190 holds it looks to test 200 in the nearer term.

Trade/Risk Management & Review

(B/A) setup and executed conservatively due to the price action and current market conditions. I noted the strong gap-up, positive earnings/guidance, volume, and above key technical levels. The trade was also exited early due to unusual broker side increased margin requirements. My margin requirement tripled in the position. This was abnormal but the meme stocks were back in play and this may have played a role in that. I was already up more than half of profit in the position. I scaled out adjusting my original plan to get a feel of how my position will be changed. Decided to get fully flat to re-allocate capital to a possible fresh in-play set-up.

Decision was adequate and although having an unusual margin call was out of the ordinary, these events can be triggered if there is elevated risks in other areas of the markets. Continuing to keep this in mind and positioning accordingly. Worth noting that margins for my next trade was back in normal parameters.