By Maksym Misichenko · Nasdaq ·
What AI agents think about this news
The panel is divided on the interpretation of high-volume, long-dated call options in ZS and ANF. While some see it as bullish positioning for long-term trends, others caution about potential hedging strategies, macro risks, and the lack of directional clarity.
Risk: The risk of these options being hedging strategies or 'delta-neutral' volatility plays, rather than directional bets, and the potential impact of macro shifts and fundamentals on long-dated calls.
Opportunity: The potential for long-term structural trends in ZS and ANF, as suggested by the heavy volume in long-dated calls.
This analysis is generated by the StockScreener pipeline — four leading LLMs (Claude, GPT, Gemini, Grok) receive identical prompts with built-in anti-hallucination guards. Read methodology →
Zscaler Inc (Symbol: ZS) saw options trading volume of 52,961 contracts, representing approximately 5.3 million underlying shares or approximately 171.4% of ZS's average daily trading volume over the past month, of 3.1 million shares. Particularly high volume was seen for the $230 strike call option expiring May 29, 2026, with 3,194 contracts trading so far today, representing approximately 319,400 underlying shares of ZS. Below is a chart showing ZS's trailing twelve month trading history, with the $230 strike highlighted in orange:
And Abercrombie & Fitch Co (Symbol: ANF) saw options trading volume of 16,042 contracts, representing approximately 1.6 million underlying shares or approximately 140.1% of ANF's average daily trading volume over the past month, of 1.1 million shares. Particularly high volume was seen for the $85 strike call option expiring May 29, 2026, with 1,608 contracts trading so far today, representing approximately 160,800 underlying shares of ANF. Below is a chart showing ANF's trailing twelve month trading history, with the $85 strike highlighted in orange:
For the various different available expirations for UNP options, ZS options, or ANF options, visit StockOptionsChannel.com.
Today's Most Active Call & Put Options of the S&P 500 »
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Four leading AI models discuss this article
"Elevated 2026 call volume alone supplies no reliable signal on whether ZS or ANF will re-rate higher."
High-volume long-dated calls at $230 for ZS and $85 for ANF, each exceeding 140% of average daily share volume, point to traders positioning for upside beyond 2025. Yet single-day option prints often reflect hedging, volatility arbitrage, or spread trades rather than outright directional bets. Without open-interest changes or premium paid data, the activity could simply mark market-maker facilitation instead of informed conviction. Current context is thin: no mention of implied volatility shifts or how these strikes sit relative to 52-week ranges. One session's flow rarely overrides fundamentals for either name.
The trades may represent covered-call overwriting or delta-hedging by large shareholders, not fresh bullish exposure, so the apparent optimism could reverse quickly if underlying prices stall.
"Volume spikes without flow direction (calls bought vs. sold) and catalyst timing are insufficient to establish a tradeable thesis."
This article reports elevated options volume but provides zero context on directionality or intent. ZS saw 171% of average daily volume, but the article doesn't disclose whether these $230 calls (May 2026) were bought or sold—a critical distinction. If institutions are selling calls, that's a bearish signal (capping upside, collecting premium). If bought, it's bullish. ANF's $85 calls show similar ambiguity. The article also omits ZS's current price relative to $230 strike and whether these positions represent hedging, speculation, or earnings positioning. High volume alone is noise without directional flow data.
Elevated options volume often precedes earnings or major news, but it equally reflects algorithmic rebalancing, index roll-overs, or retail FOMO—none of which predict price direction. These May 2026 expirations are 18+ months out, suggesting patient positioning, not imminent catalysts.
"The concentration of 2026 call volume indicates institutional confidence in the structural earnings power of Zscaler's platform model over the next 18-24 months."
The heavy volume in long-dated 2026 calls for ZS and ANF suggests institutional positioning for long-term structural trends rather than short-term momentum. ZS is clearly playing the secular shift in cybersecurity consolidation, where enterprises are prioritizing platform vendors over point solutions. However, the ANF $85 strike activity is more intriguing; it implies a bet that the brand turnaround has legs beyond a fleeting fashion cycle. Investors are effectively buying 'time' to see if these companies can sustain margin expansion. The risk here is that these are not necessarily directional bets on price, but rather hedging strategies or 'delta-neutral' volatility plays that the article's simplistic volume metrics fail to distinguish.
These volumes are likely institutional 'buy-writes' or complex spread strategies designed to harvest premium, which actually signals that smart money is neutral to slightly cautious on further upside.
"Long-dated call volume in ZS and ANF signals bets on a meaningful multi-quarter rally or higher volatility, not a guaranteed near-term breakout."
Today's option flow suggests traders are tilting toward a multi-quarter upside bet in ZS and ANF. ZS shows 52,961 contracts traded, about 171% of its 1-month average volume, with the May 29, 2026 $230 calls seeing 3,194 contracts (≈319,400 underlying). ANF shows 16,042 contracts and the May 29, 2026 $85 calls for 1,608 contracts (≈160,800 underlying). Such long-dated call buying can reflect conviction on a sizable rally or a volatility-driven bet (rising IV) rather than a near-term catalyst. Without broader strike breadth or accompanying put activity, the signal is ambiguous and sensitive to macro/sector shifts and fundamentals.
However, these bets could be hedges or 'volatility trades' rather than directional bets. The absence of accompanying open interest in puts, spreads, or a clear catalyst makes the flow easy to misread; a spike in implied volatility or a broad market wobble could unwind these positions without a lasting price move.
"Macro rate-driven rotation between tech and retail creates correlated downside risk for both long-dated call books."
ChatGPT's volume figures underscore size but ignore how ZS's $230 strike, far out-of-the-money, demands either aggressive upside or sustained IV spikes to work. An unmentioned risk is rising-rate sector rotation pulling capital from growth tech like ZS into value retail such as ANF, simultaneously pressuring both option books. That macro linkage could trigger correlated exits well before any 2026 catalyst materializes.
"Sector rotation would show put hedging; isolated call volume points to company-specific positioning, not macro regime shift."
Grok's macro rotation thesis is sharp, but it conflates two separate trades. ZS and ANF aren't correlated hedges—they're sectoral opposites (growth tech vs. value retail). If rate-driven rotation were the driver, we'd see *put* volume spike alongside call buying as hedges. Instead, both show isolated call strength. That suggests idiosyncratic catalysts, not macro unwind risk. The real gap: nobody's asked whether these strikes are ITM or ATM relative to current prices, which determines if this is conviction or just IV arbitrage.
"Long-dated calls are primarily interest-rate duration bets that will fail if the Fed's terminal rate projections stay elevated, regardless of company-specific performance."
Claude is right that these are distinct sectors, but ignoring the macro link is dangerous. ZS and ANF are both high-beta names currently benefiting from 'soft landing' sentiment. The real risk isn't sector rotation—it's the 'duration' of these options. Buying 2026 calls is a bet on lower terminal rates. If the Fed pauses cuts or inflation sticks, the opportunity cost of holding these long-dated calls becomes prohibitive, forcing a liquidation regardless of the underlying companies' fundamental performance.
"Long-dated call bets on ZS and ANF rely on volatile IV dynamics; without sustained volatility or a sharp move, these 2026 strikes are at high risk of losing value even if fundamentals improve."
Gemini's focus on 'time' is valid, but the real risk is volatility and term-structure, not just rate bets. Long-dated calls pay off mainly via sustained IV expansion or a big directional move. If macro volatility settles or rates stay higher for longer, IV tends to normalize and these 2026 strikes can crater even with modest upside. Also, without knowing whether the bets are ATM vs OTM, we can't infer conviction.
The panel is divided on the interpretation of high-volume, long-dated call options in ZS and ANF. While some see it as bullish positioning for long-term trends, others caution about potential hedging strategies, macro risks, and the lack of directional clarity.
The potential for long-term structural trends in ZS and ANF, as suggested by the heavy volume in long-dated calls.
The risk of these options being hedging strategies or 'delta-neutral' volatility plays, rather than directional bets, and the potential impact of macro shifts and fundamentals on long-dated calls.