I LOST BIG on ZScaler Today — But Here’s What I Learned

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I LOST BIG On ZScaler Today: What Happened?

Let’s be real: not every trade is a winner. Sometimes, even the best-laid strategies can unravel in just a few trading hours. That’s exactly what happened to seasoned trader and YouTuber Mark Yegge when he lost money on a ZScaler trade — and he shared it all in his video titled, “I LOST BIG on ZScaler Today: What Happened?”

What stands out isn't just the loss itself — it's how Mark responded. Instead of panic, he showed discipline. Instead of hiding the mistake, he taught us through it.

In this post, we’ll break down what happened, why it happened, and the vital lessons it carries for anyone serious about long-term investing, passive income, or covered call strategies.

The Setup: A Covered Call Trade on ZScaler

ZScaler (ZS), a leading cloud security company, seemed to be setting up for a breakout. The market had recently shown a green day, and all signs pointed to bullish momentum. So, Mark entered a covered call position — a classic passive income strategy where you own the stock and sell call options against it to collect premium.

He bought deep in-the-money long calls (135 strikes) and sold short calls (205 strikes) to generate consistent “juice” — his term for weekly option income.

At first, it worked. The position was positive. Juice was flowing.

But markets can be brutal.

The Breakdown: ZScaler Drops Nearly 10% in a Day

Suddenly, ZScaler fell sharply — by $17 in a single session. That’s nearly a 10% plunge, wiping out any gains from the covered calls.

Oddly enough, there wasn’t any terrible news. In fact, ZS was upgraded by Canaccord Genuity that very day. But in volatile markets, fundamentals often take a backseat. As Mark said in the video:

“The bottom line is there are more sellers than buyers today… and stocks are dropping.”

This is what traders call a market-wide correction, and even strong individual stocks can’t escape the gravity pull.

Mark’s Circuit Breaker Strategy: Risk Management in Action

What separates professional traders from emotional ones is discipline. Mark didn’t wait around hoping for a rebound. He had already established a mental stop — what he calls a “circuit breaker.”

For ZScaler, his breaker was the 200-day moving average, sitting near $191. Once the stock fell below that level, it was his signal to exit — no second guessing.

“You have to have a rule, and you have to be unemotional about executing on that rule.”

He swiftly bought back his short calls, sold his long calls, and exited the position. The loss was real, but it was controlled.

Why This Loss Was a Victory in Disguise

You might be thinking — if he lost money, how is that a win?

Because every trade is not about making money — it’s about making good decisions. And in this case, Mark did everything right:

He entered the trade based on technical signals
He collected income (juice) upfront
He defined his exit strategy beforehand
He followed through on that strategy despite market noise

That’s exactly how smart investors build long-term success. Losses are inevitable — how you handle them makes all the difference.

Life-Improving Tips from This Loss

This story is more than just a trade recap. It’s a powerful reminder of the mindset and method needed to survive and thrive in investing. Here are the key takeaways:

✅ 1. Have a Clear Rule and Stick to It

The market doesn’t reward emotions. If you create a circuit breaker, respect it. Whether it’s a 200-day moving average or a percentage drop, define your threshold and act.

✅ 2. Income Strategies Are Great — Until They’re Not

Covered calls are a beautiful tool for generating passive income. But if the underlying stock tanks, the small option premium won’t protect you. Juice doesn’t matter if the stock crashes.

✅ 3. The Market Is Unpredictable

Even with the right entry — like Mark’s green market day — outcomes can surprise you. Having a market timing system helps, but no strategy is perfect. Be ready for head fakes.

✅ 4. Risk Management > Predictions

Trying to forecast the market is a losing game. Focus on managing risk and response instead of guessing what comes next.

✅ 5. You’re Not a Loser if You Lose Money

As Mark put it: “I lost money, but I’m not a loser.” Powerful. Losses don’t define you — your consistency, discipline, and learning do.

Frequently Asked Questions (FAQs)

Q: What is a covered call strategy?
A: It involves owning a stock and selling call options against it to generate income.

Q: What’s the “juice” Mark keeps referring to?
A: Juice refers to the premium income generated from selling options.

Q: What’s a deep in-the-money call?
A: A call option where the strike price is significantly below the stock’s current price, offering high intrinsic value and some downside protection.

Q: Why use a circuit breaker instead of a stop-loss?
A: A circuit breaker is a mental or technical threshold (like the 200-day moving average) that helps make unemotional exit decisions based on market structure, not just price action.

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Call to Action

If you’ve ever taken a loss and felt defeated — you’re not alone. The key is learning from it and becoming more strategic with each trade.
Subscribe to Mark Yegge’s YouTube channel for real-time trading insights and honest breakdowns of both wins and losses.
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I LOST BIG on ZScaler Today — But Here’s What I Learned

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