1 Software Stock Hitting New Highs

Dear WallStreetZen Member,

This week, our Smart Leverage Alert centers on RingCentral (RNG).

RingCentral is a leader in cloud communications. We’re talking about the voice, video, messaging, and contact-center software businesses run on … and it’s rapidly reinventing itself as an AI-powered customer-engagement platform. After years in the market’s doghouse, the stock has come roaring back and just hit a new high.

The setup is a momentum story powered by a genuine turnaround. RingCentral has more than tripled over the past year and climbed roughly 59% in three months, breaking out to a fresh 52-week high after its latest quarter blew past expectations. Revenue and margins topped guidance, free cash flow jumped 21%, and the company raised its full-year outlook while cutting gross debt to around $1 billion.

The engine behind it is AI. RingCentral’s paid AI products now account for roughly 15% of recurring revenue, to the tune of over $400 million, double a year ago. This is a legacy software name successfully turning the AI wave into real, high-margin revenue.

Wall Street is constructive, with the analyst consensus rating RNG a Buy.

Our Zen Ratings model is firmly on board. RNG earns an A rating, the equivalent of a Strong Buy recommendation, placing it in the top 3% of more than 4,600 stocks, and it’s a top-ranked name in the Application Software industry.

Behind that score, RNG ranks in the top 11% for Value, the top 4% for Momentum, the top 4% for Safety, and the top 1% for our Financials factor — attractively priced, riding a powerful trend, with exceptional safety and financial strength.

Our Logic

With Zen Options Essentials, we use "Smart Leverage" — Deep-In-The-Money options that let you control shares for a fraction of the cost, with your maximum risk strictly defined from day one.

The "Smart Leverage" Setup: RNG Long Call

Given the strong fundamental case and the powerful uptrend in RNG, here’s how we’re structuring the trade using Smart Leverage — Deep-In-The-Money calls that move nearly dollar-for-dollar with the stock, but with strictly defined risk from day one.

Instead of committing about $8,560 to own 100 shares outright, a Deep-In-The-Money Call lets you control those same shares for about $2,952.

• The Play: $75 Strike Call (Expiring Apr 16, 2027)
• Delta: 0.8138 — Right in our sweet spot. This option moves nearly dollar-for-dollar with the stock. You get the upside with significantly less capital at risk.
• Intrinsic Value: ~78% — The vast majority of what you pay is real value, not time decay. This is what separates a Smart Leverage setup from the kind of speculative options trades that blow up amateur accounts.
• Leverage Multiple: 1.71x — Every dollar still works harder for you than the stock, while the deep ITM strike keeps meaningful downside protection versus a naked speculative call.
• The Target: For this position to double (+100%), RNG only needs to reach approximately $100.10 — a roughly 34% move in the stock that produces a 100% return on the option premium.

Why Options Over Shares?

A roughly 34% move in RNG stock would be a solid return for shareholders. In this Deep-In-The-Money option, that same move has the potential to double your investment while putting only about $2,952 at risk instead of $8,560.

That’s the power of Smart Leverage: stock-like upside with a fraction of the capital and strictly defined risk from day one.

What To Do Next?

RNG is just one of the setups our Zen Options Essentials TradeFinder identified this week.

And the best part? You don't need to spend hours doing research to find these trades. The TradeFinder does the heavy lifting — scanning for Deep-In-The-Money options with the optimal Delta, the right Intrinsic Value, and the right Leverage Multiple — so you can evaluate a trade like this in minutes.

How is that possible?

Because the best options trades aren't about picking exotic strategies or timing the market perfectly. They're about finding great stocks…and using Smart Leverage to control your risk while amplifying your upside.

EXACTLY what the Zen Ratings model is built to find.

EXACTLY what this methodology has been delivering.

If you'd like to see how this entire methodology works, start by watching our presentation, "Options Trading with the Zen Ratings." It walks through the Smart Leverage framework, the TradeFinder, and how we identify these opportunities step by step.

Options Trading with the Zen Ratings >

Or, perhaps you are ready to start using Smart Leverage by becoming a Zen Options Essentials member. Click below to join: 

Zen Options Essentials >

Happy Investing,

Mijusko Sibalic

Senior Writer, Zen Options Essentials

Want to get in touch? Email us at news@wallstreetzen.com.