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ZS Covered Call Analysis: Proceed With Caution Weak · 30/100
ZS · $118.05 ·
Analysis generated Apr 10, 2026 ·
Data as of market close Apr 10
· Market closed — data may be from last trading day
This strategy is NOT recommended for ZS right now
Score 30/100. The technical signals do not support selling covered calls on ZS at this time.
RSI at 27 — oversold, not ideal for selling calls. IV -22% vs avg — premiums below average, less income. MACD bearish — stock may keep falling (risk).
Check back when conditions improve, or consider a different strategy.
Quick Take
ZS is trading at $118.05 with RSI at 27 (oversold territory). Options IV is at 59% — 22% below its 30-day average of 75%. Neither RSI nor IV strongly favor selling calls right now. Consider waiting for better conditions or using a different strategy.
Technical Signals
RSI (14)
27
IV Today
58.6%
IV vs 30d Avg
-22%
MACD
bearish
ADX
30
MFI
41
The Setup
ZS Covered Call
LONG STOCK
100 shares @ $118.05
SHORT CALL
$125 Jun '26 · $11.85/sh
Net Cost
$10,620
Max Profit
+$1,880
Break-even
$106.20
Projected P&L at Target
+$1,880
(17.7%)
P&L at Expiry
P&L Scenarios
What happens at different ZS prices by expiry:
| ZS Price | Today | May 5 | May 27 | Jun 19 (exp) |
|---|---|---|---|---|
| $94 (-20%) | -$1,438 | -$1,314 | -$1,208 | -$1,176 |
| $100 (-15%) | -$986 | -$824 | -$664 | -$586 |
| $106 (-10%) | -$574 | -$377 | -$158 | +$5 |
| $112 (-5%) | -$206 | +$21 | +$294 | +$595 |
| $116 (-2%) | -$6 | +$235 | +$534 | +$949 |
| $118 (0%) ← now | +$119 | +$367 | +$681 | +$1,185 |
| $120 (+2%) | +$237 | +$492 | +$817 | +$1,421 |
| $125 (+6%) ← target | +$447 | +$711 | +$1,049 | +$1,880 |
| $130 (+10%) | +$645 | +$911 | +$1,251 | +$1,880 |
| $136 (+15%) | +$851 | +$1,114 | +$1,440 | +$1,880 |
| $142 (+20%) | +$1,025 | +$1,277 | +$1,576 | +$1,880 |
Why This Strategy, Why Now
- RSI at 27 — oversold, not ideal for selling calls
- IV -22% vs avg — premiums below average, less income
- MACD bearish — stock may keep falling (risk)
- ADX at 30 — moderate trend
- No squeeze — no imminent breakout
Key Risks
ADX at 30 indicates a moderately strong trend. In trending markets, covered calls cap your upside too early. Use a higher strike to leave more room.