New Put Calendar Spread

This post is restricted to paying members. To follow is specific new trade details:

Stock / Symbol: Zscaller / ZS;

Option Strategy: put calendar spread;
Price at trade post: $67.70;

Reasoning: Putting a directional trade on ZS with the thought that it will continue to trade lower at least until its next level of support at around 63. It also helps that its volatility has greatly diminished following its earnings release. We're utilizing a long July 19th expiration put and a short June 21st expiration put of the same strike to construct this trade. The current Greeks are: a negative delta of -7.8, a positive theta of 1.29 and a positive vega of 2.95. Our price target for the trade is $60 - 63.

Trade Details:

BTO 1 ZS 19Jul2019 60 put
STO 1 ZS 21Jun2019 60 put

for a max net debit of $1.40 per contract
(day order, limit order). The mid is currently at a debit of $1.35 . It's ok to try again Monday with ZS trading between 67 - 68. I was filled at $1.35.


Cost/Proceeds: $140
Option Requirement: $140
Total Requirements: $140
Estimated Commission: $3

Max Risk: $140
Max Reward: $230 or 164% by Jun 21st at $60
Profit Range: Between $54.25 and $67.30 by May 24th
Suggested Downside Stop @ $57
Suggested Upside Stop @ $70.00

Positive Theta

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