Mike Khouw: I was wrong about Zscaler. Here's how I'm managing the trade
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- Zscaler beat past-quarter revenue and earnings per share expectations.
- Zscaler forecast FY2027 growth of about 16.5%, missing analyst expectations.
- Zscaler saw the sudden departure of two senior sales leaders.
- Mike Khouw’s July 165/185/220 call spread risk reversal lost roughly $35 as the underlying fell $59.
- Mike Khouw’s position fell below the 50‑day moving average, limiting exposure to about 60% of the share‑price decline.
Why it matters: Investors in Zscaler see their holdings erode as the stock slides after weak guidance and leadership churn, while traders like Khouw face realized losses on hedged positions, underscoring the risk of relying on earnings beats alone.
